A top AI-driven cybersecurity software company, SentinelOne is growing fast. However, its stock is down a shocking 78% from its all-time high, set in 2021. This could spell an excellent opportunity for investors who are ready to ride the wave. But why is the stock so low right now, and what can we expect in the future? Let’s take a deeper dive into what’s going on at SentinelOne.
The Value of Cybersecurity
We’ve all heard about the recent data breaches at massive corporations, and smaller companies are not immune. Cybersecurity is companies’ main line of defense against bad actors using ever more sophisticated means to steal corporate and customer data. A cyberattack can be devastating, costing businesses millions of dollars to repair, not to mention the near impossibility of rebuilding consumer trust. However, traditional methods of protection are not always enough to fend off increasingly more complex attacks. SentinelOne harnesses the power of AI to reduce the human workload and detect and rectify more threats more quickly.
What The Industry Is Saying
SentinelOne is experiencing strong and growing demand for its services, especially from larger organizations. Importantly, the company also reported positive free cash flow for the first time in this most recent quarter. Its revenue is up 40% YOY, beating its biggest rival, CrowdStrike. The company’s 2021 valuation was incredibly ambitious, with a price-to-sales (P/S) ratio of more than 100. Today, with a more realistic P/S ratio of just 7.4 and fast-growing revenue, many investors believe that SentinelOne is poised for a comeback. If you’ve been looking for an opportunity to buy into the lucrative cybersecurity market, this is definitely one to consider. There are never any guarantees, particularly in the fickle tech market, but all signs are currently positive for SentinelOne.
Neither Lisa Fritscher nor Stocks.News hold positions in any of the companies referred to in this article. Please see our disclosure page for more information.
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Lisa Fritscher
Contributing Writer
Lisa Fritscher has been a contributing writer for App.Stock.News since 2024. Lisa has been interested in investing since winning The Stock Market Game in high school. In more than a decade as a professional writer, she has written consumer-facing financial information and advice articles for a wide variety of publications. She has a Bachelor of Arts in Psychology from the University of South Flori...