What Happened?
Shares of cyber security company SentinelOne (NYSE: S) fell 6.3% in the morning session after anxiety and uncertainty rattled markets as the major stock indices pulled back in the morning session amid concerns about "reciprocal tariffs" to be announced later in the week. The planned tariffs, scheduled for April 2, 2025 (dubbed Liberation Day), were targeted at all countries where the United States had a trade deficit.
Simply put, if a US trading partner imposed higher tariffs on American goods than the US did on theirs, the "reciprocal tariffs" would apply.
The prospect of heightened trade tensions seemed to have stoked fears of stagflation (slower economic growth and elevated inflation) as the anticipated tariffs will likely raise input costs for businesses.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy SentinelOne? Access our full analysis report here, it’s free.
What The Market Is Telling Us
SentinelOne’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock dropped 15% on the news that the company reported weak third-quarter results. Revenue was just in line, which usually isn't enough for a high-growth SaaS stock. In addition, operating profit missed, meaning that the revenue growth was less profitable than expected. Overall, this was a mediocre quarter, especially in light of some strong earnings results from larger software names.
SentinelOne is down 21.1% since the beginning of the year, and at $17.81 per share, it is trading 37.9% below its 52-week high of $28.68 from December 2024. Investors who bought $1,000 worth of SentinelOne’s shares at the IPO in June 2021 would now be looking at an investment worth $419.06.
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