SentinelOne should be growing far faster on about one-fifth of CrowdStrike's revenue, yet its growth keeps slowing. Revenue grew 20% versus CrowdStrike's 23%, billings growth slowed to 11.7%, $100k+ customer additions fell and retention slipped to 109% versus about 115% at CrowdStrike. The GAAP net loss widened to $110M, free cash flow is negative and net margin has not improved since 2024. SBC is 29% of revenue, the share count rose 4.2%, and buybacks make no sense with negative free cash flow. … Show more

Security software is arguably more of an AI bubble than semiconductors. Firms are bid up to nosebleed multiples on moderate AI-related revenue acceleration while facing medium- to long-term risks from Microsoft, Google and the AI labs and a 10-year Treasury yield above 5%. Their forward P/Es rest on non-GAAP earnings that exclude large stock compensation. A reversal could come from results missing high buy-side bars, security share gains by Microsoft or Google, or AI lab security launches. x.com  … Show more

SentinelOne is objectively one of the best cybersecurity software companies ever, and its incompetent management is why it trades at only 4x ARR. Few software companies ever reach $1B of ARR, fewer are still growing 20%+ at that scale, and fewer still can be bought at 4x ARR. Its -23% GAAP margin, raised by @davey_juice, is not great. x.com  x.com  x.com 

CrowdStrike's valuation looks detached from its fundamentals. It is still unprofitable on a GAAP basis, trades at 116x forward earnings, and is growing more slowly than it was in 2021. x.com 

Zscaler's management is undermining trust in the stock even after a quarter that beat on revenue, EPS, billings and guidance. On the call the CFO offered a 16-17% FY27 guide before FY26 ended and contradicted himself, leaving investors scared. FCF margin guidance fell on higher data center capex, with 2027 capex guided another 200bp of revenue higher. Mythos looks like the real value-add, making cybersecurity names look like resale wrappers around AI LLMs. Very tough for long-term holders. x.com  … Show more

SentinelOne's growth is solid and profits are starting to pour in, yet the stock trades at only 5x forward sales. It reported $56M of net new ARR, with total ARR of $1.218B, up 22% year over year. Matching CrowdStrike's net new ARR jump would have required about $65M; per @SergeyCYW, CrowdStrike added a record $333M, up 50.5%. x.com  x.com  x.com 

Palo Alto Networks is an expensive stock for the profit growth it will deliver over the next couple of years, despite another strong quarter and a promising annual guide. x.com  x.com 

Cloudflare isn't worth buying while the market resets software valuations, and the bottom is far off. Even a company this strong, with a great story as the security tool everyone needs in the AI era, gets hammered on any slightly disappointing result. Software isn't useless; it just doesn't deserve these valuations, and owning it under a negative narrative is miserable. Jensen Huang's upbeat SaaS comments may not reflect his real view. x.com  x.com 

SentinelOne doesn't need to beat CrowdStrike to work, because cybersecurity is large enough for multiple winners and should keep growing as AI adds agents, cloud workloads and autonomous software that need protecting. It already has more than $1.2 billion of ARR, 20%-plus growth and improving margins. Its growth is the slowest of the group today, but if it remains a major security platform over the next decade, its current valuation leaves a lot of room. x.com 

SentinelOne is an AI-native cybersecurity platform trading at only about 4x sales. Its Purple AI agentic security product addresses a real emerging market, and in the agentic AI era cybersecurity is infrastructure, not optional. x.com