Sentinel One - Stock Chatter

Elliott Wave Analysis | S CMP: 27.95 | Dt 12/1

Guess what happens next?

Scene 1 - The most valuable public cybersecurity IPO hits a market cap of $10 billion on its first day of trading!

Next - Then it skyrockets to $21 billion—only to drop back down to $2.5 billion.

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1. What does Sentinel One do?

SentinelOne is a cybersecurity firm specializing in AI-driven endpoint protection platforms designed to autonomously prevent, detect, and respond to cyber threats. For more information, visit their official website.

• SentinelOne has rapidly established itself as a leader in AI-driven autonomous cybersecurity solutions, showcasing remarkable revenue growth of 1,133% from 2017 to 2020.

2. Claim to fame

1. Leader in AI-Powered Cybersecurity: Recognized for its innovative use of artificial intelligence in threat detection and response.

2. Industry Recognition: Positioned as a Leader in the Gartner® Magic Quadrant™ for Endpoint Protection Platforms for three consecutive years

3. Strategic Acquisitions: Expanded capabilities through acquisitions like PingSafe, enhancing cloud security offerings.

3. Revenue, Profitability, and Market Cap

• Revenue (2023): $631 Mn.

• Profitability: -$338 Mn.

• Market Capitalization (November 2024): Approximately $8.9 billion.

Source: Trading View - Financials | Stock Analysis | Macrotrends

4. Elliott Wave Prophecy

Primary Count

• Sentinal reached an all-time low in June of this year and has been in an uptrend since then. Our primary count suggests it is currently in the midst of a new impulse wave upward (highlighted in blue in Chart #1).

• According to this count, Wave 3 up is now underway. Within this Wave 3, Wave (i) of a smaller degree is nearing completion. If this wave count is correct, the immediate implication is that the price should correct in Wave (ii) before resuming its upward movement.

• Chart #2 below illustrates a triangle pattern forming. The conclusion of this pattern is likely to initiate the Wave (ii) pullback.

• The price is expected to respect the AVWAP trendline around the $20 area and should not drop below it. If it does fall below this level, we will need to reassess and consider the alternate wave count.

Alternate Count

• According to this alternate count, Sentinel has been in a long-term downward trend. The current upward move is merely a corrective pullback, and once it concludes, the stock is expected to resume its decline.

• Given the diagonal pattern, a short-term drop appears likely. We will continue to monitor this evolving pattern to determine which of the two counts (primary or alternate) presents the higher probability setup.

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