SentinelOne fell after forecast, eToro director cashed out millions: what is happening with Israeli companies on Wall Street?
In Globes' weekly column, we checked what happened to prominent Israeli stocks on Wall Street at the end of the week. Reports beat expectations but the forecast cut: the reason for SentinelOne's fall. The veteran director at eToro cashed out millions in shares - and the analysts who continue to believe. And also: Amdocs stock jumped 26% from the bottom: is it a "bargain" that will continue to fly?
On Friday, trading on Wall Street tended toward slight declines, and in the summary of the last two trading days of last week, the leading indices rose by between 0.2%-1%. These are the Israeli stocks (and those with ties to Israel) that stood out in trading.
SentinelOne beat forecasts but lowered the annual profit forecast and the stock weakened
The cybersecurity company, SentinelOne, founded and managed by Tomer Weingarten, published financial reports on Thursday after the close of trading, and on Friday, its stock lost 5.2% on high trading volume. At the end of the trading week, SentinelOne stock closed at a price of $21.54, which reflects a market value for the company of about $7.4 billion. However, since the beginning of 2026, the stock is still at a positive return of 43.6%. SentinelOne first went public on the New York Stock Exchange in 2021 and the company's value at the IPO was $9 billion.
SentinelOne published the reports for the second fiscal quarter (the quarter that ended at the end of July). The company presented a 21% growth in revenue to $292 million, and a net loss of $93.4 million according to GAAP, an increase from a loss of $72 million in the corresponding quarter. On a Non-GAAP basis, the company is profitable - with a net profit of $28.5 million, an increase of more than 2 times from the corresponding quarter, and a total of 8 cents per share. Thus, SentinelOne beat analysts' forecasts. The ARR (annual recurring revenue) reached over $1.2 billion at the end of the quarter.
Despite beating the forecasts, the company published a disappointing forecast and lowered the annual profit forecast. The annual revenue forecast was raised to $1.202-1.207 billion compared to the previous forecast midpoint which was $1.2 billion. However, the company now expects a Non-GAAP net profit of 30-32 cents per share compared to a previous forecast of 32-38 cents. In total, the annual net profit will reach about $112 million. In the third fiscal quarter, the company expects revenue of $309-311 million, and a Non-GAAP net profit of 8-9 cents per share (about $31.5 million).
After the reports, analyst Joseph Gallo from the investment bank Jefferies raised the target price for the stock by one dollar, to $26, a premium of 20.7%, with a "buy" recommendation. According to him, despite weakness in the free cash flow which was negative at $13.2 million, SentinelOne is a "unique technology asset" with growth of over 20% and remains very attractive in his estimation. The target price was set according to a 6.5 multiple on the expected revenue in 2027.
eToro is trading with volatility, analysts recommend it at a 56% premium
eToro stock has been trading with volatility since the beginning of the year, after the stock rose almost 20% until the end of May it has lost 26% since then, and today it is trading at a price that reflects a value for the company approaching $2.5 billion. Since the IPO last year, the stock has lost about 40%.
eToro, under the management of Yoni Assia who is one of the company's founders, provides its users with a trading platform that allows them to trade in various investment channels, such as stocks and cryptocurrencies. This month, the company published the reports for the second quarter and at the same time reported a significant acquisition, in which it will pay $231 million in cash and shares for the company TradeZero. The acquired company also provides a trading platform, and it targets the Canadian market and also has a presence in the USA. Since mid-August, eToro stock has been trading with gains, possibly also against the background of the strengthening of Bitcoin (the company allows trading in it and also holds Bitcoin). In contrast, on Friday, eToro stock weakened by 3.8%. According to a report submitted to the SEC, Eddy Shalev who is a director and a veteran investor in the company is selling eToro shares in exchange for about $3.2 million.
According to Wall Street Journal data, 14 analysts currently cover eToro stock, of which 9 recommend it with positive recommendations and 5 are neutral. The average target price reflects a premium of 56%.
Is Amdocs stock a "bargain" after a 26% rise from the low?
Amdocs stock has lost 21.9% of its value since the beginning of 2026, but in the last two months it has been in a positive trend and has risen by 26.1% since the low it reached at the end of June. Amdocs, managed in recent months by Shimai Hortig, provides technological solutions for telecom and media companies. On the investor site Simply Wall Street, they wrote last week about Amdocs stock and noted that it "still looks like a bargain after weak returns". According to them, the stock has yielded weak returns in the last three years, but its valuation shows it as cheap, and they are examining whether the recent rises close the gap. Based on the P/E ratio, they believe the stock is still undervalued.
According to Wall Street Journal data, out of 8 analysts covering Amdocs, 5 are positive and 3 are neutral, and the average target price is 34.6% higher than the current price.
