Samsara Inc (NYSE:IOT) stock is 16% higher today, bucking the broad market selloff, after the internet-connected sensor systems firm reported adjusted fourth-quarter earnings of 18 cents per share on $444.3 million in revenue, both of which exceeded estimates. A better-than-expected fiscal year outlook and uses of AI to automate workflows is also encouraging investors.
Samsara stock is eyeing its best single-session gain since Sept. 5. The shares hit a two--year low of $23.38 on Feb. 4, but are now on track to clear their 80-day moving average for the first time on a closing basis since mid December. IOT remains below its year-to-date breakeven level, though, and is still off by 18.3% in the last 12 months.
A short squeeze could power additional gains. Short interest is up 40% in the two most recent reporting periods, and the 32.22 million shares sold short account for 9.4% of the stock's total available float. At IOT's average pace of trading, it would take shorts more than four trading days to buy back their bearish bets.
Options traders are entering the fray. At last look, 15,000 calls have changed hands, volume that's eight times the average intraday amount and more than double the number of puts traded. While the weekly 3/6 24-strike put is the most popular, the weekly 3/13 35-strike call is seeing new positions bought to open.
