SentinelOne, Inc. (S): A Bull Case Theory

We came across a bullish thesis on SentinelOne, Inc. on Global Equity Briefing’s Substack by Ray Myers. In this article, we will summarize the bulls’ thesis on S. SentinelOne, Inc.'s share was trading at $18.46 as of September 11th. S’s forward P/E was 92.59 according to Yahoo Finance.

SentinelOne is positioning itself as a disruptive force in the fast-growing cybersecurity industry, where threats have evolved from physical invasions to sophisticated digital attacks. The company offers an AI-driven, cloud-native platform called Singularity that autonomously prevents, detects, and responds to threats across endpoints, networks, cloud environments, and identity credentials. Its agent-based architecture enables on-device, real-time responses without relying on continuous connectivity, giving it an edge over legacy providers like McAfee and Symantec and even next-generation competitors such as Microsoft.

Sentinel’s subscription-based SaaS model, supported by a land-and-expand strategy, has driven rapid growth, with ARR rising from $67 million in 2020 to $1 billion in 2025, though recent retention issues have raised concerns. To address this, Sentinel launched its Flex offering, simplifying pricing and procurement while improving customer stickiness.The company operates in several high-growth markets, including endpoint security, data analytics, cloud, and identity, with a combined TAM exceeding $100 billion, and it is also an early mover in generative AI security. Its solutions have been recognized by Gartner as among the top offerings in endpoint and cloud security, and customer demand for its products remains strong.

Despite slowing growth and questions about customer retention, Sentinel trades at a steep discount to CrowdStrike, with a P/S ratio far below its rival, offering potentially superior risk/reward. If Sentinel executes on its growth plan and expands margins, its valuation model suggests upside of nearly 150%, with returns improving further if market multiples expand. While risks remain, including competition and retention, SentinelOne represents a compelling cybersecurity investment in a sector where demand will only intensify.

Previously we covered a bullish thesis on SentinelOne, Inc. by Matthew | Sycamore Capital in March 2025, which highlighted AI-driven cybersecurity momentum, profitability milestones, and expanding enterprise adoption. The company’s stock price has depreciated approximately by 4.59% since our coverage. This is because retention concerns weighed on sentiment. The thesis still stands as SentinelOne remains positioned for long-term upside. Ray Myers shares a similar but emphasizes on valuation discount and retention risks.

SentinelOne, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held S at the end of the second quarter which was 44 in the previous quarter. While we acknowledge the potential of S as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.