SentinelOne, a rising star in the cybersecurity industry, is poised to capitalize on the recent flaws in CrowdStrike’s update that affected millions of computers worldwide. While the long-term impact on CrowdStrike remains uncertain, this incident presents an opportunity for SentinelOne to shine as a smaller rival. With its standout technology and impressive growth potential, SentinelOne is positioned as a top cybersecurity stock to consider for investors seeking long-term gains.
SentinelOne’s Singularity platform utilizes cutting-edge artificial intelligence (AI) to proactively detect and neutralize threats before they cause harm. The platform has received accolades, including top performance in third-party benchmark tests such as the “MITRE ATT&CK” Evaluation and positive reviews from technology professionals on Gartner’s website. While larger competitors like CrowdStrike and Microsoft also offer robust technology, the recent incident may give SentinelOne an advantage in winning new business.
SentinelOne’s growth trajectory is already impressive, with revenue exceeding $1 billion. The company has expanded its product portfolio, introducing offerings for data lake, cloud, identity security, and Purple, a generative AI feature that enhances user experience. These new products accounted for 40% of bookings in the first quarter of SentinelOne’s fiscal year 2025. Sustaining strong revenue growth will be crucial for SentinelOne’s investment potential.
As a smaller company, SentinelOne has significant room for growth. Its archrival, CrowdStrike, estimates the market opportunity for AI-native cybersecurity to be worth $100 billion, projected to reach $225 billion by 2028. While SentinelOne’s current annual sales are below $1 billion, this underscores the vast potential ahead and the early stage of market penetration. The company’s ability to secure major clients, including Fortune 10 companies and hundreds in the global 2000, demonstrates its competitiveness despite its size.
One key advantage of investing in SentinelOne is its attractive valuation. The stock trades at a roughly 50% discount compared to other prominent cybersecurity names. Although profitability has been a challenge, SentinelOne recently generated positive free cash flow, signaling a positive shift in its financials.
While it is essential for SentinelOne to maintain its technological leadership and continue innovating, the company’s current position as a $7 billion cybersecurity stock with strong growth momentum and improving financials presents an opportunity for investors seeking long-term returns. If SentinelOne can replicate the success of its rival, CrowdStrike, over the next decade and beyond, it has the potential to create millionaire investors. Patience and favorable market conditions will be key factors in realizing this potential.