From Yahoo Finance: 2025-06-06 16:08:00

Deep Value Returns’ Substack recently shared a bearish thesis on SentinelOne, Inc. (S). As of May 29th, S was trading at $17.39 with a forward P/E of 89.29. The author admitted to a mistake in owning and recommending S due to its failure to meet high-growth expectations and struggles to compete with larger peers like CrowdStrike.

Despite a clean balance sheet and growing free cash flow, SentinelOne has faced revenue growth challenges and management’s withdrawal of revenue guidance. The author highlighted red flags for a growth stock, such as slowing revenue growth and a high valuation at 60x forward free cash flow. They recommended selling S due to limited upside and increasing risks.

Previously, a bullish thesis on SentinelOne was shared in March 2025, emphasizing the company’s AI-driven cybersecurity leadership, revenue growth, profitability, and strong cash balance. Despite near-term challenges, the stock has risen 8.1% since the previous coverage. S is not among the 30 most popular stocks among hedge funds, with 44 holding it in Q1 compared to 47 in the previous quarter.



Read more at Yahoo Finance: SentinelOne, Inc. (S): A Bear Case Theory