SentinelOne Stock Plummets Despite Record Trading Volume and Revenue Growth

On May 29, 2025, SentinelOne (S) experienced a significant trading volume of $452 million, marking a 120.26% increase from the previous day. However, the stock price declined by 11.59%, marking the second consecutive day of decline, with a total drop of 13.40% over the past two days.

SentinelOne reported its first-quarter earnings and revenue, which met Wall Street's consensus estimates. The company's earnings on an adjusted basis were 2 cents per share, compared to a 1-cent loss a year earlier. Revenue for the quarter ended in April was $228.4 million, a 23% increase from the previous year. The company's board of directors also authorized a $200 million share repurchase program.

Despite meeting revenue expectations, SentinelOne's stock tumbled due to weak guidance for the current quarter. The company predicted revenue of $242 million at the midpoint of guidance, which fell short of Wall Street's targets of $245 million. This weak guidance, coupled with concerns over growth and profitability, led to a significant drop in the stock price.

SentinelOne's annualized recurring revenue from subscription-based products and services increased by 24% to $948.1 million, slightly below estimates of $952.3 million. The company's software detects malware on various endpoints that access corporate networks and is building a broad threat-detection cybersecurity platform.