Unstoppable AI Stock Plummets 78% – Great Opportunity to Buy

Cybersecurity company SentinelOne has revealed its latest cybersecurity tool, Purple AI, which is powered by artificial intelligence (AI). The tool has been developed to combat malicious actors who have become more sophisticated in launching attacks using AI tools. Purple AI offers a chatbot feature that prompts users to search for specific threats proactively and autonomously respond to incidents without human intervention. It can also analyse a chain of events relating to a specific attack and summarise them in an easy-to-digest format for cybersecurity managers. SentinelOne expects that Purple AI will solve the issue of alert fatigue, where cybersecurity managers are bombarded with more alerts than they can investigate, resulting in an obvious vulnerability. SentinelOne recently reported a slowdown in growth, with a 70% growth rate YoY in FY2024 Q1, compared to an expected 100% growth rate. The company’s customer base exceeded 10,680 businesses during Q1, representing a 43% increase YoY. Existing customers are estimated to be spending 25% more on SentinelOne’s cybersecurity tools than a year ago. Despite this growth, SentinelOne’s stock price has slumped by 78% since its all-time high. However, the dip in stock price now presents an attractive risk-reward proposition for potential investors as the cybersecurity industry is expected to grow over time. The company’s continued efforts in AI-powered cybersecurity have the potential to lead to greater adoption and provide companies with a far more convenient protection method. At present, SentinelOne trades at a price-to-sales (P/S) ratio of 9.3, which is its lowest valuation since going public and 40% cheaper than its competitor, CrowdStrike.