Sentinel One – A thought experiment update

Despite Saul’s warning (…) on Sentinel One, I took a starter position last month.

My position was based on two main ideas.

  1. Crowdstrike CEO George Kurtz keeps talking about them. I thought there must be a reason.
  2. The pre IPO numbers were pretty bad, except for revenue growth, so I thought it wouldn’t be too hard to dramatically improve them.

Did they? Let’s take a look.

Operating Margin

Pre IPO     -127%
Q2          -98%
Q3 exp      -96% to -99%
Full Yr Exp -99% to -104%

Some improvement but still horrible. I’m out with a 36% gain, feeling lucky it wasn’t a loss.