Samsara is the IBD Stock of the Day ahead of its fourth quarter earnings report due March 6. Samara stock has forged a cup base, bouncing back from a sell-off on its third quarter earnings report.
On the stock market today, Samsara stock rose a fraction to 55.24. Further, IOT stock has gained 26% in 2025.
Founded in 2015, Samsara provides sensors and cloud-based software to manage vehicle fleets and industrial operations. Further, its Internet of Things platform provides GPS tracking for trucks, and monitors routes and vehicle performance.
With earnings due March 6, investors may want to be cautious ahead of the report. One strategy around earnings would be to use call options. That approach would let investors cap their possible loss while still letting them participate in any post-earnings upside.
Having formed a cup base, Samsara stock holds an entry point of 57.51, according to MarketSurge.
Samsara Stock: Founders
Sanjit Biswas and John Bicket cofounded Samsara in 2015. Earlier they founded Meraki, a Wi-Fi and cloud networking startup. They sold Meraki to Cisco Systems for $1.2 billion in 2012.
Samsara began by selling fleet management software in the transportation industry. By leveraging its Global Positioning System technology along with telematics — sensor data gathered from trucks — Samsara eventually helped customers monitor routes and vehicle performance. That helped them save money on preventive maintenance and fuel usage.
From there, Samsara in 2018 expanded into video-based safety products. Further, these enabled fleet customers to lower vehicle insurance costs.
In-cab, dual-facing cameras provide real-time video streaming. Also, artificial intelligence software at cloud data centers detects high-risk behavior, such as distracted driving and lane departure.
Samsara Stock Technical Ratings
Samsara stock holds an IBD Composite Rating of 99 out of a best-possible 99, according to IBD Stock Checkup.
IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. Also, the best growth stocks have a Composite Rating of 90 or better.
Further, Samsara stock has an Accumulation/Distribution Rating of B+. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. Its current rating indicates more funds are buying than selling.
The rating, on an A+ to E scale, measures institutional buying and selling in a stock. A+ signifies heavy institutional buying, E means heavy selling. Think of the C grade as neutral.
For Q3, Samsara reported earnings of 8 cents per share on an adjusted basis versus a 4-cent profit a year earlier. Meanwhile, revenue rose 36% to $322 million, the company said.
Samsara Asset Tags A Hit
Analysts expected Samsara to report a profit of 4 cents a share on sales of $310.6 million. Annual recurring revenue from subscriptions rose 35% to $1.35 billion, slightly above estimates of $1.34 billion.
For the current quarter ending in January, Samsara said it expects revenue of $335 million at the midpoint of its outlook, just below estimates. Samsara stock analysts had projected revenue of $335.8 million.
TD Cowen analyst Derrick Wood in a report said investor expectations were running high heading into the Q3 earnings report.
"Underlying story remains well intact, and we continue to see durable growth drivers — international expansion, new products, up-sell/cross-sell — that should keep IOT as one of the fastest growing software companies in annual recurring revenue," he said.
Many analysts are upbeat about new, non-vehicle "asset tags." The non-vehicle tags track an assortment of smaller industrial assets.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
