Invest in AI without Breaking the Bank: A Easy Pick to Hold Forever
In the corporate cybersecurity landscape, a study by McKinsey and Co. suggests that the market could be worth between $1.5 trillion and $2 trillion annually if companies invested adequately in protection against hackers. However, current spending is predicted to reach just $213 billion by 2024, indicating numerous companies are underprepared. This situation presents a tremendous opportunity for cybersecurity firms, making stocks like SentinelOne (S -1.40%) an appealing investment.
Cybercrime is on the rise, with a projected cost of $10.5 trillion to the global economy by 2025. In this environment, companies cannot afford subpar protection, which might result in hefty damages following a successful attack. Investors may consider purchasing SentinelOne shares, like a single share for $30 or more.
SentinelOne, a provider of AI-driven cybersecurity software, stands to gain significantly from this situation. The company's growth is supported by its advanced platform, Singularity, which offers comprehensive protection for cloud networks, employee identities, and endpoints. AI plays a crucial role, enabling quicker neutralization of cyberthreats than human analysts can manage.
Singularity features include Storyline, a tool that generates a timeline of security events, enabling managers to swiftly identify and address incidents. In the event of a breach, one-click remediation instantly rolls back networks to their previous state, helping organizations recover swiftly.
In 2025, SentinelOne launched Purple AI, an AI-powered virtual assistant embedded within the Singularity platform. This assistant can hunt down specific threats, investigate security events, and even provide detailed incident summaries, aiding non-expert staff in resolving issues.
SentinelOne reports an average of over 1,000 security alerts each day for enterprises, making Purple AI a vital tool in managing workloads. The feature drove robust growth, making it SentinelOne's fastest-growing product in its Q3 of fiscal 2025.
Additionally, SentinelOne's revenue growth has been impressive, reaching $211 million in its third quarter, a 28% increase from the previous year. The company boasts more than 1,300 clients with annual contract values exceeding $100,000, marking a significant increase from the past year.
While management cautiously manages costs to optimize the bottom line, the company's net loss has decreased by 18% compared to the previous year, showing promise for a sustainable, long-term business strategy.
Despite SentinelOne's stock currently trading 66% lower than its all-time high, it remains cheaper than competitors such as CrowdStrike and Palo Alto Networks. The combination of its strong revenue growth and current valuation may make it an attractive buy, especially for investors who already hold stocks in these competitors.
In light of the projected cost of cybercrime reaching $10.5 trillion by 2025, investing in cybersecurity companies like SentinelOne could be a wise financial decision. SentinelOne's growth, driven by its advanced cybersecurity platform and AI-powered tools, has resulted in impressive revenue figures and a significant increase in clients with high annual contract values.
