In the first half of 2025, the S&P 500 experienced a gain of approximately 5%, despite facing a year-to-date low of 15% in April, following President Donald Trump’s announcement of tariffs on imported goods. Selected growth stocks, particularly SentinelOne and Alphabet, are currently trading below their previous highs, although they may rebound due to the strength of their respective businesses in sectors like artificial intelligence (AI).
SentinelOne reported a total revenue of $229 million in Q1 of fiscal 2026, marking a growth of 23% from the previous year, although this represented a deceleration from earlier growth rates. The company has lowered its full-year forecast to $998.5 million, citing macroeconomic uncertainties, despite not being directly affected by tariffs. Conversely, Alphabet generated $90.2 billion in total revenue for Q1 2025, a 12% year-over-year increase, with Google Search revenue at $50.7 billion, up 10%, and Google Cloud revenue at $12.2 billion, up 28%. Alphabet is currently valued at a P/E ratio of 19.8.
Both companies have potential for recovery in the second half of 2025, driven by their advancements in AI and resilient business models, despite facing market volatility and sector challenges.
