Samsara Inc. (IOT) Down 7.2% — Time to Drop This From the Portfolio?
Key Points
Samsara Inc. (IOT) finished the latest session under pressure, sliding 7.19% to $32.38 after retreating from a prior close of $34.89. That move left the stock losing ground by $2.51 in a single day, reinforcing a short-term downtrend that has been building as shares continue to face headwinds near recent lows. Trading activity came in below trend, with roughly 4.3 million shares changing hands versus a 90-day average closer to 5.4 million, suggesting the latest leg lower unfolded without a surge in participation but still with enough selling interest to push the price back toward the bottom of its recent range.
From a longer-term perspective, the stock remains sharply below its 52-week peak of $61.90 set on Feb. 19, 2025, now trading roughly $29.50 under that high and hovering just above its 52-week floor of $31.40. This steep retreat from the top of its range highlights how much ground the shares have already given up, leaving the price action looking fragile and tilted to the downside. Within the broader cloud and software cohort, names like CrowdStrike (CRWD), Snowflake (SNOW), and Cloudflare (NET) have also seen bouts of weakness at various points, but Samsara’s deep pullback from its high and its proximity to the 52-week low underscore how much more aggressively it has been repriced. Overall, the recent tape paints a picture of a stock under sustained selling pressure, struggling to regain lost territory as it drifts near key support levels.
Why Samsara Inc. Price is Moving Lower
Samsara Inc. shares have been locked in a tight band around $34–$35, but that apparent stability masks meaningful downside pressure over the past month. The stock’s roughly 17% slide in market value into mid-January reflects lingering investor concerns after the December Q4 earnings miss and continued negative profitability, with EPS at -$0.08 and a profit margin of -2.78%. Even with solid topline momentum — revenue rose 6.3% sequentially to $415.98 million and nearly 30% year over year — the market is signaling that growth alone is not enough to offset ongoing losses and execution risk at this stage of the cycle.
Sentiment is also being tested by recent insider selling and elevated trading activity around modest price gains. The CAO’s mid-January stock sale, occurring as daily volume spiked above average on multiple sessions, reinforces a narrative of insiders using strength to trim exposure rather than signaling conviction in a near-term rebound. At the same time, the broader software and cloud cohort — including names like CrowdStrike, Snowflake, and Cloudflare — continues to face scrutiny over valuations and the path to sustained profitability. Analysts still carry a “Moderate Buy” stance with an average target near $50, but the market’s unwillingness to bid shares meaningfully higher suggests growing skepticism that Samsara can quickly translate strong revenue growth into durable earnings, keeping pressure on the stock and warranting caution at current levels.
What is the Samsara Inc. Rating - Should I Sell?
Weiss Ratings assigns IOT a D rating. Current recommendation is Sell. The stock was last time upgraded on 9/22/2023, and it remains in a category where downside risk outweighs the potential reward. In other words, even after reassessment, Samsara Inc. still does not meet the standards we look for in a more favorable risk-adjusted profile.
The Excellent Growth Index, supported by revenue growth of 29.19%, shows the business is expanding rapidly. However, that growth has not translated into sustainable profitability or efficient operations. The Very Weak Efficiency Index, combined with a negative profit margin of -2.78% and an extreme forward P/E ratio of -445.59, signals that investors are paying a high price for growth that has yet to generate consistent earnings. The Excellent Solvency Index indicates balance-sheet strength, but this alone has not been enough to reward shareholders or reduce overall risk.
The Fair Total Return Index and Weak Volatility Index reinforce the cautious view. Historical performance has been only middling relative to risk, and price swings add another layer of uncertainty. In the Information Technology sector, Samsara’s D rating is in line with other high-growth, high-risk names such as CrowdStrike Holdings, Inc. (CRWD, D) Snowflake Inc. (SNOW, D-), and Cloudflare, Inc. (NET, D-). Taken together, the D rating signals that, despite impressive top-line expansion, Samsara Inc. remains a speculative play where operational weaknesses and valuation concerns dominate the investment case.
About Samsara Inc.
Samsara Inc. (IOT) operates in the Information Technology sector, focusing on Software and Services for physical operations. Founded in 2015 and headquartered in San Francisco, California, the company positions itself as a connected operations platform provider, aiming to digitize fleets, equipment, and worksites. Its core offering is the Connected Operations Platform, built around a Data Platform that ingests, aggregates, and enriches information from Samsara’s own IoT devices, third-party connected assets, and external systems. This platform incorporates embedded AI, workflow automation, analytics, alerts, APIs, and security and privacy features, but it is heavily dependent on continuous data capture and connectivity, which can be a point of operational complexity for customers.
Samsara’s main applications span multiple use cases but remain concentrated in fleet and field operations, limiting its relevance outside asset-intensive industries. Its video-based safety product relies on AI-enabled cameras to monitor drivers and incidents, raising practical and compliance challenges around deployment and policy enforcement. Vehicle telematics tools provide GPS tracking, routing, diagnostics, fuel management, driver recognition, and electric vehicle charge planning, but these capabilities compete directly with numerous established telematics and fleet management vendors. Workforce apps target frontline workers with digital forms, maintenance inspections, compliance logs, safety audits, timesheets, and messaging, yet adoption often requires significant process changes within customer organizations. The company also offers equipment monitoring for generators, compressors, heavy equipment, and trailers, plus site visibility for security and incident response, serving transportation, logistics, construction, utilities and energy, government, healthcare, education, food and beverage, and other sectors where integration and standardization can be challenging.
Investor Outlook
With Samsara Inc. (IOT) carrying a D (Sell) Weiss Rating, investors may want to exercise caution and closely monitor whether recent trading stabilizes or if downside momentum resumes. Watch for any improvement in the underlying risk factors that drive the D rating, as well as broader Information Technology sentiment, to gauge whether the stock’s risk/reward profile is changing meaningfully. See full rankings of all D-rated Information Technology stocks inside the Weiss Stock Screener.
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