S Stock Recent News

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The cybersecurity sector is a compelling industry to invest in. Customer demand remains strong, and cyberattacks show no signs of slowing down.

In the latest trading session, SentinelOne (S) closed at $24.12, marking a +1.9% move from the previous day.

The adoption of artificial intelligence (AI) in the cybersecurity industry has been gaining momentum in the past couple of years, unlocking a significant long-term growth opportunity for companies in this sector.

SentinelOne, Inc.'s $1.1 billion cash balance and no debt provide a substantial cushion for growth, supporting a path to $40 per share by summer 2025. Despite recent earnings disappointments, SentinelOne's improving free cash flow margins and financial discipline will reframe it as a profitable growth story. My investment thesis for S stock focuses on future free cash flow, projecting a 9% margin by Q4, emphasizing long-term potential over short-term noise.

S' strong prospects, driven by an expanding AI-powered portfolio, as well as a solid partner base, is noteworthy. However, a stretched valuation is a concern.

The cybersecurity market is projected to grow at a 12% CAGR through 2028, with cloud-based cybersecurity potentially growing even faster. SentinelOne's Singularity XDR suite drives strong ARR growth, with projections of $1.25 billion ARR by FY2026 and a DBNRR around 130%. SentinelOne is nearing profitability, with expected positive operating income by FY2026.

I reiterate my buy rating for SentinelOne due to its robust revenue and ARR growth, particularly from larger enterprise customers. Emerging products like Purple AI and AI Security Posture Management are experiencing strong adoption, positioning S to capitalize on the growing AI security market. Enhanced distribution through partnerships with Lenovo and achieving FedRAMP High certification significantly expands S's market reach and credibility.

MoneyShow presents top investment ideas for 2025 from their contributors. This year's edition presents a broad mix of theme-based stock picks, momentum-driven high-flyers and beaten-up stocks with turnaround potential, along with some speculative plays and ETFs. Part 5 includes Boeing, Warby Parker, SentinelOne, Dutch Bros, Tilray Brands and SFL, among others.

With Donald Trump officially in office, Dr. Chris Pierson expects to see less oversight on cybersecurity in the private sector and instead place a greater emphasis in Federal agencies. Mike Marcotte agrees but hopes to see more people knowledgeable in the space take more leadership roles in Federal government.