SentinelOne's stock dropped 7% after disappointing guidance despite beating Q3 earnings with $258.91M revenue and 20% growth in key customers. Volatility shock presents upside for bullish speculators.

Cybersecurity specialist SentinelOne Inc (NYSE: S) reported Q3 financial results beating expectations with adjusted earnings of 7 cents per share and $258.91 million in revenue. Total revenue grew by 23% YoY, with customers generating ARR of $100,000 or more growing by 20% to 1,572. However, investors were disappointed by the fourth-quarter sales guidance of $271 million, lower than the expected $273.09 million, leading to a 7% drop in S stock after hours and a 13% drop in the open-market session. Despite the volatility, there is speculation about upside potential for bullish traders due to the company's strong AI-native security platform. Volatility, heteroskedasticity, and market patterns were cited to explain the stock's reaction to the guidance miss and its eventual transition to low volatility. Investors are advised to keep an eye on changes in volatility for potential trading opportunities.