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SentinelOne (NYSE: S) is positioning itself as more than just another endpoint security provider, it has become a next-generation cybersecurity platform powered by artificial intelligence. At the core of this transformation is its Singularity platform and Purple AI engine, which deliver autonomous threat detection, cloud and data protection, and security operations that reduce the need for manual intervention while lowering costs for clients.

With new offerings gaining traction and acquisitions like Prompt Security broadening its reach, SentinelOne is embedding itself deeper into enterprise security strategies and expanding well beyond its original niche.

The company’s latest quarterly results highlight the one big reason SentinelOne could be a hidden winner: accelerating adoption of its AI-driven, cross-platform solutions. Revenue grew 22%, annual recurring revenue surpassed $1 billion, and operating margins improved by more than 500 basis points. Importantly, nearly half of new bookings came from products outside traditional endpoint security, proving that customers are increasingly turning to SentinelOne for a wider range of needs. This cross-selling momentum makes the platform stickier and strengthens its long-term growth potential.

Yet Wall Street may not be fully appreciating this shift. While SentinelOne is steadily moving closer to profitability, it still lags larger rivals like CrowdStrike and Microsoft, who benefit from broader product portfolios and deeper resources. This has kept some investors cautious. But at just 6x sales, SentinelOne trades at a valuation that looks modest compared to both its growth profile and the wider software sector.

So, the key question for investors is whether the market is underestimating SentinelOne’s AI-driven platform expansion – the one big reason it could quietly become a long-term winner in cybersecurity – or whether near term risks of slowing growth and competition are overshadowing its true potential.

Let’s break it down using the IDDA – Capital, Intentional, Fundamental, Sentimental and Technical.

IDDA Point 1 & 2: Capital & Intentional

Before investing in SentinelOne, ask yourself:

 Do you want exposure to a fast-growing cybersecurity firm at the front of AI driven, autonomous protection?

 Are you looking for a company expanding beyond endpoint into cloud, data, and security operations, with rising cross-sell adoption among enterprise customers?

 Do you believe SentinelOne can close the gap with rivals on profitability while still growing market share in a consolidating security industry?

SentinelOne’s stock has historically been volatile. It initially performed well after going public, climbing as high as $78, but then plummeted in 2022 to a low of around $12. Since then, it has been consolidating in a range between $15 and $28. For long-term investors, the stock has yet to show meaningful recovery from that sharp drop, making it a high risk holding. For short-term investors, there may be opportunities to profit from the swings in volatility, but this approach also carries considerable risk.

IDDA Point 3: Fundamentals

SentinelOne continues to show strong sales momentum, with revenue in the second quarter of 2026 growing 22% compared to the same time last year, reaching $242 million. This growth was slightly faster than rival CrowdStrike’s 20% growth, even though SentinelOne is still the smaller company. Its recurring subscription revenue also grew 24%, passing the important $1 billion milestone. While growth has slowed a little compared to previous years, the company is still on track for solid double-digit growth in the next quarter and the full year.

Profit margins are also improving. SentinelOne’s operating margin, which measures how much profit is left after covering operating costs, turned positive at 2.2% this quarter, a big improvement from -22% two years ago and -3% last year. Gross profit margins, which show how much is left after subtracting the cost of providing services, stood at an impressive 79%. That’s higher than CrowdStrike’s 73%, and management expects these strong levels to continue into the second half of the year. The company now expects to deliver a 3% operating margin for the full year, showing that the business model is becoming more efficient and scalable.

Beyond the financials, SentinelOne is seeing encouraging adoption of its broader security offerings. Around half of its quarterly bookings came from products outside traditional endpoint protection, such as cloud and data security. This suggests the company is making progress in cross-selling to its existing client base, an important step as more enterprises prefer to consolidate security spending with fewer vendors. Notably, 40% of enterprise customers now use more than three SentinelOne products, and 20% use more than four, with both groups expanding quickly. This signals deeper customer integration and growing stickiness of the platform.

One of SentinelOne’s biggest strengths is its balance sheet. The company finished the quarter with $1.2 billion in cash and no debt. This gives it a lot of flexibility to keep investing in research and development, expand through acquisitions such as the recent purchase of Prompt Security, and still have a financial cushion. While that acquisition will use up some of the cash reserves, the overall financial position remains strong and supports future growth.

Finally, from a valuation perspective, the stock trades at about six times its annual sales. This is considered attractive for a high growth software company, especially compared to peers that trade at higher multiples. Even after assuming more modest long term profit margins of around 25%, the current valuation still looks reasonable. Overall, SentinelOne’s strong revenue growth, improving margins, healthy cash position, and expanding product adoption show that the company has a solid growth profile, even if it has not yet reached consistent profitability.

Fundamental Risk: Medium – High

IDDA Point 4: Sentimental

Strengths

Strong long-term demand, with the endpoint security market set to grow rapidly.

Singularity platform improves over time, making it harder for customers to leave.

Many untapped opportunities in new areas where larger players are not as active.

Risks

Big cloud providers also offer cybersecurity solutions, limiting growth potential.

Competes against larger, well-funded rivals like CrowdStrike and Palo Alto Networks.

Heavy spending on research and sales means consistent profitability may take time.

Investor sentiment around SentinelOne is a mix of optimism and caution. On the positive side, the stock has benefited from a broader rotation back into software names, with strong earnings helping drive renewed interest. Many investors see its AI-first technology and strong cash position as reasons to stay confident in its long-term story, and awards like Frost & Sullivan’s recognition reinforce credibility. 

At the same time, concerns remain about slowing growth, heavy competition from larger rivals like CrowdStrike and Microsoft, and the company’s ongoing losses, which set it apart from more profitable peers. Some analysts also worry about overreliance on acquisitions and the potential for margins to come under pressure. Still, with an attractive valuation and momentum in the software sector, many view the stock’s risk-reward profile as compelling, which supports the overall bullish sentiment.

Sentimental Risk: High

IDDA Point 5: Technical

On the weekly chart: 

 Current pattern is in a consolidation phase – signaling mixed market sentiment

 Future Ichimoku Cloud is bearish but flat, suggesting the bottom phase of consolidation

 The Tenkan and Kijun lines are converging closely together, signalling a potential shift in trend

On the weekly chart, the stock climbed sharply in 2021 to a high of 78, before plummeting after forming a double top in 2022 to a low of 12. Since then, it has been consolidating between 15 and 28, with no clear recovery or meaningful growth. Currently, the future Ichimoku Cloud remains bearish and flat, while candlesticks sit below the cloud, reinforcing the resistance zone. The Tenkan and Kijun lines are converging closely, and if the Tenkan crosses above the Kijun to form a golden cross, it may signal the end of the bottom phase of consolidation and the beginning of the upward phase.

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On the daily chart:

 The stock remains in a consolidation phase – reflecting uncertainty and mixed sentiment

 The future Ichimoku Cloud is still bearish yet flat, pointing to a possible base forming

 The Tenkan and Kijun lines are tightening, hinting at an upcoming change in direction

On the daily chart, the stock was in an uptrend from May to December 2024. In 2025, it shifted into a downtrend, then moved into consolidation in April, with no recovery or rebound yet. While there was a small jump around earnings, the price has not tested the cloud, which is acting as a resistance zone. If the stock tests the cloud and breaks above it, it would re-enter the upward phase of consolidation. To confirm a meaningful uptrend, it will also need to break above the resistance level at 21.

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Investors looking to get into S can consider these Buy Limit Entries:

Current market price 18.86 (High Risk)

16.67 (Medium Risk)

12.85 (Low Risk)

Investors looking to take profit can consider these Sell Limit Levels:

21.79 (Short term)

23.96 (Medium term)

26.61 (Long term)

Here are the Invest Diva ‘Confidence Compass’ questions to ask yourself before buying at each level:

1. If I buy at this price and the price drops by another 50%, how would I feel? Would I panic, or would I buy more to dollar-cost average at lower prices? (hint: this question also reveals your CONFIDENCE in the asset you’re planning to invest in).
2. If I don’t buy at this price and the stock suddenly turns around and starts going up again, will I beat myself up for not having bought at this level?

Remember: Investing is personal, and what is right for me might not be right for you. Always do your own due diligence. You should ONLY invest based on your own risk tolerance and your timeframe for reaching your portfolio goals

Technical Risk: High

Final Thoughts on SentinelOne (S)

SentinelOne has evolved from a niche endpoint security provider into a next-generation cybersecurity platform powered by artificial intelligence. Its Singularity platform and Purple AI engine deliver autonomous protection across endpoints, cloud, and data, reducing manual work and cutting costs for clients.

Adoption of its newer offerings beyond endpoint security is growing strongly, helping the company embed itself more deeply into enterprise security strategies and benefit from the broader trend of vendor consolidation. 

This expansion is the key reason SentinelOne could become a hidden winner in cybersecurity, as it builds a broader suite of solutions that increases customer loyalty and long-term growth potential. However, challenges remain around profitability and competition from larger rivals like CrowdStrike and Microsoft, while the stock’s history of volatility shows that technical recovery is not yet confirmed, leaving both risks and opportunities for investors.

Key Takeaways:

 The one big reason SentinelOne could be a hidden winner is its expansion into AI-driven, cross-platform security solutions that make it more than just an endpoint provider. For long-term investors, this growth strategy offers compelling potential, even with profitability still a work in progress. For short term investors, volatility within the $15 to $28 range offers swing trading opportunities, but confirmation of a breakout will be key to unlocking the next leg higher.

Overall Stock Risk: High

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