Why did Samsara stock surge up today? Apparently the sell-off was overdone (update)

Mar. 08, 2022 6:26 PM ETIOTBy: Val Kennedy, SA News Editor

Initial Public Offering. IPO. Financial trade. Investment

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IoT technology provider Samsara (NYSE:IOT) saw its stock reach a new 52-week low on Tuesday before surging to close up 11% after investors apparently decided that stock's recent sell-off was overdone.

Shares of Samsara closed at $16.21, up 11%. The stock hit a 52-week low of $14.21 earlier in the day, down 38% from its initial public offering price of $23 per share. Samsara shares had reached a 52-week high of $31.41 on Dec. 27.

Samsara shares have trended lower since it released its Q4 earnings report, which topped expectations, after market close on March 2. The stock opened 13% higher at $18.73 on March 3 before dropping 11% to close at $16.82. Shares continued to slide over the next two sessions before hitting the new low Tuesday morning.

Samsara held its IPO on Dec. 16, raising net proceeds $847M after pricing shares at $23 per share.

Based in San Francisco, Samsara allows businesses with physical operations to connect to Internet of Things data through its cloud-based platform to gain insights and help improve operations.

For a more in-depth look at Samsara, check out SA contributor The Value Investor’s “Samsara: Sensing Potential”. For a more bearish view, read SA contributor Noah Wilson’s “Samsara Shows That Being in a Transformational Industry Does Not Equate to Profitability”.

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