A Quick Take on Sentinel One

For a comprehensive overview of SentinelOne’s products and business model, see our Primer.

Summary

• SentinelOne (S) offers an opportunity despite recent market challenges and tariff concerns, primarily due to its robust operational performance and promising outlook. The company's valuation, at 5X EV/S, is very reasonable, especially compared to peers.

• SentinelOne is strategically shifting from the mature endpoint market with new products like a comprehensive CNAPP (Cloud Native Application Protection Platform), leveraging AI-driven solutions to position itself for substantial growth and market share gains.

• SentinelOne’s strategic shift toward CNAPP represents an evolution of its on-device AI capabilities, integrating them into a unified cloud security framework that bridges endpoint and cloud environments.

• The company’s on-device neural network offers a crucial speed advantage to real-time threats, where the competition relies on cloud and human analysts, and it feeds a data flywheel that locks in customers and is difficult to replicate for rivals.