Key Takeaways Okta ended Q1 FY26 with 20,000 customers and subscription revenue growth prospects of 10.3%.SentinelOne's Purple AI saw triple-digit bookings growth, with attach rates above 25% in Q1 FY26.Okta shares are down 13.9% YTD, outperforming SentinelOne's 25.1% decline over the same period.Okta (OKTA) and SentinelOne (S) are key providers of security software solutions for enterprises. OKTA offers cloud-based identity solutions that allow customers to integrate with nearly any application, service or ...

Group 1: Alphabet - Alphabet is often misunderstood as a search company, but it is actually a content discovery platform with significant distribution advantages and extensive behavioral data [2] - Google holds over 65% of global browser share with Chrome and over 70% of smartphones run on Android, enhancing its distribution capabilities [3] - The new AI-powered Search Mode has been well-received, with 82% of users finding it more helpful than traditional search, and 75% preferring it over ChatGPT [4] - Google Cloud revenue increased by 28% last quarter, indicating strong growth and investment in capacity [5] Group 2: GitLab - GitLab is transforming into a software development lifecycle platform, countering concerns that AI will reduce the need for coders [6] - The release of GitLab 18 introduced over 30 new features, including the Duo Agent Platform, which enhances the development cycle [7] - Revenue grew by 27% last quarter, driven by new customers and existing customers upgrading [8] Group 3: Salesforce - Salesforce is refocusing its platform around AI with the new Agentforce platform, which has over 4,000 paying customers [10] - The strategy involves unifying apps, data, automation, and metadata into a framework called ADAM to build AI agents [11] - As a leader in CRM software, Salesforce's push into AI agents could significantly drive growth [12] Group 4: ServiceNow - ServiceNow is leveraging AI to transform its business, expanding from IT management into HR, finance, and customer service [13] - The integration of AI into its Now Platform has led to a quadrupling of AI-driven Pro Plus deals year over year [14] - ServiceNow is positioned as a cost-saving platform, which may help it perform well despite concerns about enterprise software budgets [15] Group 5: SentinelOne - SentinelOne's stock faced pressure in the first half, but a new partnership with Lenovo is expected to boost performance in the second half [17] - Lenovo will pre-install SentinelOne's Singularity Platform on new computers, providing a significant growth opportunity [18] - SentinelOne experienced 23% revenue growth last quarter, and its Purple AI solution is the fastest-growing in its history [19][20]

Group 1 - SentinelOne Inc. operates in the cybersecurity industry, generating nearly all its revenue from recurring subscriptions on its Singularity Platform [1] - The Singularity Platform offers AI-powered autonomous threat prevention, detection, and response services [1] - The company also provides a generative AI solution as part of its offerings [1]

Core Viewpoint - SentinelOne, an AI cybersecurity company, has seen its stock decline significantly despite its growth potential and advanced technology, suggesting it may be undervalued in the current market [1][6][10]. Company Overview - SentinelOne went public in mid-2021 and has a proprietary Singularity Platform that uses AI for autonomous threat detection and response [4][5]. - The company has received industry recognition and has secured contracts with multiple Fortune 10 companies and hundreds in the Global 2000 [5]. Financial Performance - The stock's market cap peaked at over $20 billion shortly after its IPO, with revenue of just over $200 million that year [5]. - The price-to-sales (P/S) ratio has dropped from over 105 to 7.6, indicating a significant shift in valuation [8]. - SentinelOne's revenue is projected to grow from $821 million in fiscal year 2025 to $1.0 billion this year and $1.2 billion next year, reflecting growth rates of 22% and 20% respectively [14]. Market Position - Compared to competitors like CrowdStrike and Palo Alto Networks, which have higher P/S ratios of 28.7 and nearly 15 respectively, SentinelOne appears undervalued [10]. - Despite lower profitability compared to its peers, SentinelOne has shown improvement in profit margins and has been cash flow-positive for the past four quarters [12]. Future Outlook - If SentinelOne continues its growth trajectory, it could potentially double its market cap over the next three years, assuming a P/S ratio of 9 to 10 based on projected revenue of approximately $1.4 billion [15]. - The cybersecurity industry presents ample opportunities, and SentinelOne's competitive capabilities position it well for future growth [16].

Core Viewpoint - Cybersecurity providers are expected to remain resilient amid market volatility caused by tariffs, as cybercriminal activities continue unabated. Investors are encouraged to consider four leading cybersecurity stocks this month [1]. Group 1: Palo Alto Networks - Palo Alto Networks is transitioning from a next-generation firewall provider to a comprehensive cybersecurity platform, implementing a "platformization" strategy to consolidate customers onto three main platforms [3]. - The strategy has resulted in 1,150 of its top 5,000 customers adopting one of its platforms, with a target of 2,500 to 3,500 by fiscal year 2030. Growth is also seen in its Cortex threat detection and response solution and Prisma Cloud [4]. - Although the platformization strategy temporarily slowed growth, it is expected to yield long-term benefits for investors [5]. Group 2: CrowdStrike - CrowdStrike is positioned to benefit from companies consolidating their cybersecurity needs onto a single platform, being a leader in endpoint security [6]. - The company offers a comprehensive suite of cybersecurity solutions, with 67% of customers deploying five or more modules and 21% using eight or more [8]. - With the impact of a previous IT outage behind it, CrowdStrike is expected to see growth accelerate, making it an attractive investment opportunity [9]. Group 3: Zscaler - Zscaler is a leader in zero-trust security, emphasizing continuous verification of users and devices for secure access [10]. - The company has successfully upsold its zero-trust systems and reported a 40% increase in annual contract value for its data security products, with overall revenue growing 23% year over year [12]. - Zscaler's strong net dollar retention rate of 115% indicates robust growth within its existing customer base, positioning it well for future success [12]. Group 4: SentinelOne - SentinelOne is a rapidly growing endpoint cybersecurity company with a low forward price-to-sales multiple of 6.6, despite achieving 29% revenue growth last quarter [13]. - The partnership with Lenovo, the world's largest enterprise PC vendor, to ship computers with SentinelOne's Singularity Platform is a significant opportunity [14]. - The company is also successfully upselling its Purple AI, which enhances security operations through hyper-automation, indicating a promising future [15][16].

Core Viewpoint - SentinelOne's stock has significantly underperformed in the market, with a 22.7% decline over the past three months, contrasting with the broader industry and sector performance [1][3] Group 1: Stock Performance - The stock is currently 38.6% below its 52-week high of $29.29, indicating a substantial drop in value [1] - The technical setup shows a bearish trend, with the stock trading below both the 50-day and 200-day moving averages, suggesting limited upward momentum [2] Group 2: Revenue Growth and Projections - SentinelOne has projected a revenue growth of 23% for fiscal 2026, a decrease from the previous year's 32% growth, which raises concerns about valuation pressure [7] - The company added over 500 new customers and maintained a 115% net revenue retention rate, but experienced a decline in revenue per customer, indicating challenges in upselling [8] Group 3: Market Position and Strategy - Despite recent challenges, SentinelOne is transitioning from an endpoint-centric business to a broader AI-native cybersecurity platform, with over 50% of bookings in the fiscal fourth quarter coming from non-endpoint products [9] - The company has seen strong adoption of its AI-driven products, such as Purple AI, and significant traction in cloud security, contributing to customer expansion [10] Group 4: Financial Metrics - Annual recurring revenue (ARR) grew 27% year over year to $920 million, with $60 million in net new ARR added in the quarter, showcasing improved execution [12] - Remaining performance obligations (RPO) grew 30% to $1.2 billion, indicating strong future revenue visibility [13] Group 5: Valuation - SentinelOne is currently trading at a forward 12-month price-to-sales (P/S) ratio of 5.57X, slightly above the sector's 5.39X, reflecting a premium valuation [15]