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1 No-Brainer Artificial Intelligence (AI) Stock Down 75% to Buy on the Dip in 2025
SSentinelOne(S) The Motley Fool· The Motley Fool·2025-03-18 08:56

Core Insights - SentinelOne has developed the Singularity cybersecurity platform, which utilizes AI to automate threat detection and incident response [1] - Despite a significant decline in stock price, the company's business fundamentals are improving, with accelerated revenue growth and progress towards profitability [2] Company Overview - SentinelOne went public in June 2021 at 35pershare,reachingapeakof35 per share, reaching a peak of 78.50 before experiencing an 82% decline [1][2] - The company generated a record 225.5millioninrevenueduringthefourthquarteroffiscal2025,markinga29225.5 million in revenue during the fourth quarter of fiscal 2025, marking a 29% increase year-over-year [7] - Full year revenue for fiscal 2025 was 821.4 million, a 32% increase from fiscal 2024 [9] Product and Technology - The Singularity platform offers comprehensive cybersecurity solutions, moving beyond basic antivirus software to protect cloud networks and employee identities [3] - Unique AI-powered tools within the platform include Storyline for incident summarization and Purple AI for threat hunting, which can be used by non-technical employees [4] Performance Metrics - In the 2024 MITRE ATT&CK Evaluations, SentinelOne achieved 100% threat detection accuracy with zero detection delays, generating 88% fewer alerts than the median across vendors [5] - The company reported a non-GAAP profit of 15.1million,asignificantimprovementfromthepreviousyearsnonGAAPlossof15.1 million, a significant improvement from the previous year's non-GAAP loss of 81.2 million [10] Market Position - SentinelOne's price-to-sales (P/S) ratio has decreased to 7.1, making it more affordable compared to its peers, which include CrowdStrike, Palo Alto Networks, and Zscaler [12] - The company’s Q4 revenue growth of 29% outpaced competitors, indicating strong market momentum [13] Industry Outlook - The addressable market for SentinelOne is valued at over 100billion,withincreasingdemandforcybersecuritysolutionsdrivenbyrisingcybercrime,projectedtocause100 billion, with increasing demand for cybersecurity solutions driven by rising cybercrime, projected to cause 10.5 trillion in damages by 2025 [15]