1 Best Artificial Intelligence (AI) Stock to Buy for $25 and Hold for 10 Years

Cybersecurity Ventures estimates that by 2024, cybercrime will cost the world $9.5 trillion. Additionally, the corporate sector will spend just $213 billion on cybersecurity this year, far below the $2 trillion it should be spending, according to McKinsey & Company data.

Obviously, the average cost of companies is already high do not have Provide cyber protection. As the astronomical costs of cybercrime continue to rise, the aforementioned spending gap will likely narrow.

sentinel one (S 4.84%) If that happens, be ready to take advantage of it. The company is a cybersecurity provider with artificial intelligence (AI) at the core of its offerings and continues to grow faster than its competitors. Here’s why investors want to buy SentinelOne stock now and hold it for the long term.

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A leader in AI-based cybersecurity

Cyber ​​security giant palo alto networks We recently highlighted that the frequency of phishing emails has increased tenfold in the past 12 months. Attackers are using generative AI to quickly create realistic content designed to trick employees into handing over sensitive information about their organization.

A recent study by PwC confirms that. Of the 4,702 major CEOs surveyed, 64% are most concerned about cyber risks posed by generative AI. That fear outweighs the spread of misinformation and the potential reputational risks posed by the use of technology.

Automated cybersecurity tools are essential to preventing AI-powered attacks. SentinelOne’s Singularity is a comprehensive cloud, endpoint, and identity protection platform with AI at its core. The company’s unique Storyline technology tracks security event data across the enterprise and autonomously creates summaries with actionable insights for administrators. This reduces alert fatigue, which is a serious issue across the industry as security administrators struggle to respond to a high volume of incidents.

SentinelOne’s Purple AI is another solution to this problem. It integrates with your cybersecurity stack and acts as an AI virtual assistant. You can answer questions, drill down to specific issues based on commands, and run preventive scans for newly identified threats. Purple AI can save cybersecurity managers countless hours of manual investigation and ensure fewer incidents go unnoticed.

SentinelOne is growing faster than its competitors

SentinelOne generated revenue of $174 million in the fourth quarter of fiscal 2024 (ending January 31), an increase of 38% year over year. This was a faster growth rate than Palo Alto Networks (19%). cloud strike (33%) were delivered in the most recent quarter. These two are SentinelOne’s biggest competitors in AI-based cybersecurity.

That said, SentinelOne is a much smaller company, which makes it easier to generate higher growth rates. Fiscal 2024 sales were reported at $621 million, comfortably ahead of management’s latest guidance. However, Palo Alto generated $7.5 billion in revenue in the subsequent 12 months, and CrowdStrike generated $3.1 billion in its recently ended fiscal year.

Another caveat is SentinelOne’s conclusions. The company had a net loss of $339 million in fiscal 2024, but that number decreased to $81 million on a non-GAAP basis, which excludes one-time, non-cash expenses such as stock-based compensation. Palo Alto and CrowdStrike are much larger companies and have achieved scale, making them profitable on both a GAAP and non-GAAP basis.

Operating losses mean SentinelOne is investing more in growth initiatives than its competitors relative to its revenue. This isn’t a problem in the short term, as the company has $926 million in cash and short-term investments on its balance sheet, allowing it to remain in the red for several more years. But ultimately SentinelOne will need to prove to investors that it can generate profits.

Why you should buy SentinelOne now

Sentinel One stock is trading 71% below its all-time high set during the height of the 2021 tech frenzy, when investors gave it an unrealistic valuation. Based on fiscal year 2024 sales of $621 million and current market cap of $6.6 billion, Sentinel One stock currently trades at a price-to-sales (P/S) ratio of 10.6.

By comparison, CrowdStrike stock has a P/S ratio of 26.6, meaning the stock is valued at 2.5x. Palo Alto’s P/S ratio of 13.4 means the stock is more expensive than SentinelOne, even though SentinelOne’s revenue is growing twice as fast.

Investors who buy Sentinel One stock now and hold on to it for the next 10 years may look back on this moment and be glad they did. This decade will give the industry enough time to close his $1.8 trillion spending gap and allow the corporate sector to translate generative concerns about AI into concrete investments in cybersecurity. It also gives you enough time to do it.