SentinelOne (NYSE: S) has introduced new Data Security Posture Management (DSPM) tools within its AI Security Platform, pivotal for mitigating data risks as companies increasingly utilize AI. For shareholders, these capabilities aim to prevent sensitive data from entering AI models, addressing concerns such as data memorization and pipeline poisoning. Despite the product launch, shares have declined 17.39% over the past 90 days, culminating in a 44.07% drop in annual total returns, indicating waning momentum. Analysts suggest the stock is undervalued, with a fair value estimated at $21.15, compared to its recent close of $13.87. The market’s current P/S ratio of 4.9x indicates potential upside but also valuation risks, as it remains higher than the broader software industry’s average of 3.6x. For investors, understanding SentinelOne’s growth trajectory and the risks tied to its acquisitions is crucial in evaluating this promising, yet volatile, AI security investment.
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