SentinelOne: Future Is Dependent On Scaling Its Emerging Products

Summary

• While the CrowdStrike outage is a large opportunity, SentinelOne appears to be more focused on displacing legacy vendors.
• Any growth tailwinds from the CrowdStrike outage are more likely to become apparent in Q4. I expect the impact to be modest, though.
• Despite this, SentinelOne’s growth rate appears to be stabilizing, although this is coming at the expense of margins as the company increases its growth investments.
• While SentinelOne appears attractively priced, the company must do a better job of scaling its emerging products to drive strong returns for shareholders.