Out Fox The $treet

  SentinelOne delivered strong FQ2 results, with net new ARR rebounding to $53M and total ARR surpassing $1B, alleviating prior growth concerns. AI-driven products like Purple AI and Prompt Security are driving adoption, reducing security events, and positioning SentinelOne as a leader in enterprise AI security. The cybersecurity company now has positive operating margins and boasts $1.2B in cash, supporting continued innovation and strategic acquisitions. The stock valuation remains deeply discounted at 6x forward sales versus peers, offering compelling risk/reward as growth and multiple expansion potential remain high. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios.  Learn More » SentinelOne, Inc.  ( NYSE: S ) rallied somewhat after a  strong FQ2 earnings report . The cybersecurity company has constantly been overlooked despite strong growth with a shifting focus on cloud and AI. ...

  C3.ai's revenue growth returned to 21%, with 71 new agreements and 51 pilot deals, indicating strong future growth despite market dissatisfaction. Despite slightly missing Wall St. estimates, C3.ai's FQ2 guidance still shows 24% YoY growth, with a strong history of beating targets. The stock now trades below the low-end price target range, offering up a Strong Buy signal. AI software companies already have wild reactions to earnings reports, and  C3.ai, Inc.  ( NYSE: AI ) didn't help their case with  guidance slightly below  targets. The AI software company is actually reporting accelerating growth and the  fastest growth rates since switching the business model to consumption-based, but the stock market isn't happy. My  investment thesis  is back to ultra-Bullish on the stock following the negative reaction to earnings. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more d...

  ChargePoint continues to spit out large revenue growth from selling EV charging stations at limited positive margins. The subscription revenue base is only ~$85 million despite the company spending over $330 million in annual operating expenses. The stock still has a market cap topping $4 billion while burning all the SPAC cash with substantial cash flow burn each quarter. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   ChargePoint Holdings  ( NYSE: CHPT ) is still reporting fast revenue growth without much in the way of gross profits. The EV charging space is still too focused on throwing up charging stations without much in the way of actual demand  for usage. My  investment thesis  remains ultra Bearish on the stock at just about any valuation until the business model changes. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the...

Along with reporting Q4 results, IBM (IBM) reported the next step in returning to growth. The stock never belonged below $120.

Sonos (SONO) is up sharply following FQ4 results that beat estimates. The smart speaker company easily beat EBITDA targets as their new smart speakers had a strong quarter. Source: Seeking Alpha  The biggest issue with the company is that Sonos still produced a $15 million loss last year and the company only monetizes a hardware solution. The story still isn't that compelling until Sonos figures out how to make money off the voice-assisted speakers, instead of the tech giants. Disclosure: No position. Please review the disclaimer page for more details. 

Applied Materials (AMAT) spent the last year convincing people of a new normal in the semiconductor space, but the December guidance suggests the cyclical sector hasn't changed at all. - Downside Q1 guidance has revenue of $3.56B to $3.66B (consensus: $3.98B) and EPS of $0.75 to $0.83 (consensus: $0.93; -25% Y/Y at midpoint). Consensus was for a revenue decline so it wasn't like the market expected great quarterly numbers from AMAT. The odd part was the decision of the BOD to spend $751 million during the quarter on share repurchases. Any company expecting to miss estimates by such a wide margin should not be loading up on stock buybacks. The question here is whether the cycle has further downside. AMAT still expects solid profits so now isn't the time to runaway, but its too early until after Thanksgiving to even think about chasing the after-hours dip to $32. Lets see where AMAT trades on Friday.

Qualcomm is down over 8% on disappointing FQ1 guidance. Apple remains the main thorn in their financials impacting the comparisons until the license dispute is resolved. Business remains solid, with EPS targets rising even without ~$1.7 billion in high-margin license revenue. The net payout yield is set to reach 35% make a very bullish buy signal. The perplexing story of  Qualcomm  ( QCOM ) was further evident by the reaction to a  large FQ4 earnings beat . After massive stock buybacks and with 5G on the horizon, now isn't the time to abandon ship just because  Apple ( AAPL ) continues playing hardball. My  long-term investment thesis  remains solid. Read the full article on Seeking Alpha. 

PayPal reported another solid quarter for Q1. The digital payments company produces consistently strong and growing free cash flows. The stock offers a reasonable value back by huge stock buyback plans. My  last recommendation  on  PayPal Holdings  (NASDAQ: PYPL ) over a year ago was to buy the digital payments stock alongside a $2 billion share buyback. After a big rally, the company still signals value even with the market cap soaring beyond $55 billion. Please see the full article on Seeking Alpha. Disclosure: No position. Please review the disclaimer page for more details. 

Wells Fargo reported Q4 results that missed analyst estimates. The large bank still trades at the high end of sector valuations, despite a relative underperformance over the last three months. Investors should remember that success is all relative. Before the open on Friday,  Wells Fargo  (NYSE: WFC ) reported  quarterly earnings  along with a group of large financials. The troubled bank actually missed estimates while the sector had generally blowout numbers. Read the full article on Seeking Alpha.  Disclosure: Long C. Please review the disclaimer page for more details. 

Stratasys smashed Q4 EPS estimates providing another sign of a bottom in the 3-D printing sector. Despite a big rally off the lows, the stock isn't expensive on valuation multiples. The recommendation is to buy Stratasys on any dips as the recent rally is stretched. After Thursday's rally, Stratasys (NASDAQ: SSYS ) is only back to the levels where the stock started the year. In fact, my previous research discussed how the 3-D printer manufacturer was attractive at these similar levels in November though the stock would likely provide a better buying opportunity at the start of this year. Read the full article in Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Zynga plunges prior to the release of Q4 earnings. The stock trades at valuations reminiscent of Glu Mobile prior to the recent post-earnings rally. At this valuation, Zynga doesn't need any catalysts for a rally; however, a couple of new games provide the opportunity for a big hit at last. The market is spooked by some of the large selloffs after stocks report weak Q4 numbers or provide tepid forward guidance. The key though is to understand where the stock comes from heading into the earnings release. Read the full article on Seeking Alpha.  Disclosure: Long ZNGA. Please review the disclaimer page for more details. 

Macy's trades at multi-year lows following weak holiday guidance and other strategic decisions that disappointed investors. The stock offers surging yields with a huge stock buyback plan. The highly profitable department store offers a compelling investment after the recent disaster. It is rare for a stock with a market cap in excess of $15 billion to lose 14% in one day. Macy's (NYSE: M ) managed to accomplish that on Monday, following a huge guide down for the seasonally important Q4. The department store operator provided two key data points that disappointed investors and traders alike.          Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Skyworks Solutions continues to deliver exceptional results. The company has now set a realistic target of $8 of annualized EPS based on organic growth. The recommendation remains to own the stock based on the strong fundamental business with the PMC deal providing an extra catalyst for shareholders. The amazing part of the Skyworks Solutions (NASDAQ: SWKS ) story is that the stock traded at $80 last week before the executives discussed guidance for $8 EPS in a reasonably short period. Or maybe the amazing part is that this target doesn't include the accretive deal for PMC-Sierra (NASDAQ: PMCS ). Read the full story on Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

SodaStream reported mixed Q315 results. The results were hit hard by currency headwinds and a domestic transition. The stock trades at a compelling valuation, especially considering the likelihood that currency eventually turns into a tailwind. A day after a big bounce from Q3 results, SodaStream International (NASDAQ: SODA ) gave back all of those gains. The perception is that some analysts were not happy with the holiday sales forecasts after recalculating the numbers. The reality is that the home-beverage maker had some solid results for a stock only worth $320 million. Read the full article on Seeking Alpha. Disclosure: Long SODA. Please review the disclaimer page for more details. 

The Sprint CEO claimed an infection point with the FQ2 earnings results. The company added postpaid phone customers while still burning large amounts of cash. The recommendation is to continue avoiding the stock. Anybody following Sprint (NYSE: S ) over the last few years is probably completely confused on where the wireless operator is heading. Under the previous CEO, Sprint was attempting to build the best wireless network in the country due to a large spectrum position. Under the current CEO, the company has veered in several directions with a partial attempt to build the best network, but mostly a focus on providing consumers with the lowest costs. In the process, CEO Marcelo Claure has ushered in cost cuts and reigned in capital spending that make it difficult to compete with the wireless leaders, AT&T (NYSE: T ) and Verizon Communications (NYSE: VZ ). Read the full article on Seeking Alpha. Disclosure: No position ...

Fitbit registered a secondary offering of nearly 10% of the outstanding shares. The strong Q4 guidance apparently wasn't enough to entice insiders to delay share sales. Without a major balance sheet need, Fitbit is cashing in on what the company sees as an inflated stock price. After the market close, Fitbit (NYSE: FIT ) surprised the market with the revelation of an extremely large secondary offering. The fitness device maker produced exceptional Q3 results and has a solid balance sheet, raising questions on the reason for dumping so many shares by the company and selling shareholders. Read the full article on Seeking Alpha. Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Southwest Airlines exceeded Q3 estimates when excluding fuel hedges. The airline is trading at all-time highs with a very attractive valuation. The stock is not loved enough, especially considering the industry shifting down capacity growth heading into 2016. Not long ago, Southwest Airlines (NYSE: LUV ) helped trigger a major sell off in the airline sector. At the time, investors feared that the capacity additions of the airline were going to pressure profits. The fear that the industry was heading back to the one of irrational capacity additions of the past was foremost on investor minds. Read the full article on Seeking Alpha Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

PMC-Sierra reported solid Q3'15 results. The strong results are supportive of a higher offer from Skyworks Solutions. The best way to play the deal are the suitors with Skyworks offering the best valuation even if it fails to close the deal for PMC. After the close PMC-Sierra (NASDAQ: PMCS ) released Q315 earnings. The quarterly results of buyout targets are always worth viewing since a prime reason for a board of directors to relent on a buyout is weak results. The market got a prime example of this issue with Dialog Semiconductor ( OTC:DLGNF ) plunging on weak Q4 guidance following agreeing to buy Atmel (NASDAQ: ATML ). Read the full article on Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Under Armour generated strong revenue growth during Q3'15 that led to beating analyst estimates. The company is working on numerous initiatives that are increasing revenues at the cost of margins. The stock valuation isn't justified by growth path laid out by the company. The quarterly results for Under Armour (NYSE: UA ) were generally impressive, but the stock sank over 5% as the retailer couldn't match sky-high investor expectations. The stock has struggled over the last couple of months when it exceeds $100. Even bullish revenue targets released at the Investor Day a month ago were met with the stock hitting resistance around $105. Read the full article on Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

AT&T easily surpassed Q3 2015 EPS estimates despite massive confusion regarding the revenue numbers. The market continues to not appropriately value the stock based on synergy benefits that will kick in over the next year, whether or not the company achieves the ultimate $2.5. The stock is cheap while paying a 5.6% dividend for investors to wait on synergy benefits. The Q3 results for AT&T (NYSE: T ) were a mass of confusion with the inclusion of DirecTV for only a partial period. The company came out early and pointed out that analysts were miscounting DirecTV revenue while previously changing how commercial satellite subscribers were counted. At the same time, the shift in video and broadband revenues from legacy AT&T to a new segment mingled with DirecTV revenues and expenses made quarterly comparisons difficult. Read the full article on Seeking Alpha. Disclosure: No position mentioned. Please review the dis...