Cybersecurity agency SentinelOne (NYSE: S) has seen its inventory skyrocket immediately by near 18%. A optimistic earnings name yesterday actually didn’t harm, however it appears to be information of an acquisition that’s driving the shares value skywards.
What does SentinelOne do?
SentinelOne is a California-based cybersecurity startup that was based in 2013. The corporate went public late final June through IPO, elevating $1.2 billion. The agency makes use of its proprietary ‘Singularity’ platform to supply a complete host of security measures rooted in synthetic intelligence. SentinelOne provides autonomous risk prevention, detection, and response capabilities in a veritable one-stop store for companies’ cybersecurity wants.
Why is SentinelOne fill up immediately?
SentinelOne introduced the upcoming acquisition of fellow cybersecurity agency Attivo Networks. The deal is valued at $616.5 million and might be a money and inventory transaction. The deal is predicted to shut by the tip of SentinelOne’s fiscal second-quarter pending regulatory approval. In describing the acquisition, SentinelOne COO, Nicholas Warner, acknowledged,
“The shift to hybrid work and elevated cloud adoption has established identification as the brand new perimeter, highlighting the significance of visibility into consumer exercise. Identification Risk Detection and Response (ITDR) is the lacking hyperlink in holistic XDR (Prolonged Detection and Response) and 0 belief methods.”
To attempt to break that down a little bit, this buy will successfully enable firms utilizing SentinelOne to watch particular person customers inside their ecosystems extra fastidiously. Uncommon consumer exercise may be detected faster, permitting for earlier detection or prevention of potential safety threats. That is one space that had been lacking inside SentinelOne’s suite of instruments.
So, ought to I purchase SentinelOne inventory?
Traders actually noticed this transfer as bullish, with the corporate buying and selling up 17% on the time of writing immediately. The corporate additionally posted a strong earnings name yesterday, beating analyst expectations for earnings — posting a loss per share of $0.17 in opposition to an anticipated lack of $0.18 — whereas additionally outpacing estimates in its outlook for the approaching 12 months.
Regardless of being in direct competitors with firms like Crowdstrike, SentinelOne has already carved out a distinct segment for itself within the cybersecurity area. The agency provides a product that’s extra user-friendly and with a a lot gentler studying curve. It additionally arguably has extra room to develop than its greatest competitor does having solely gone public lower than a 12 months in the past.
Regardless of a premium valuation, and no ensures that it could proceed to compete in such a aggressive market, SentinelOne is exhibiting clear indicators of future progress. It’s most actually an organization to observe over the approaching months, and if issues hold progressing as they’ve been just lately, it may make a welcome addition to a progress portfolio.