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We recently published a list of Why These 15 Cybersecurity Stocks Are Plunging In 2025. In this article, we are going to take a look at where SentinelOne Inc (NYSE:S) stands against other cybersecurity stocks that are plunging in 2025.
Cybersecurity stocks ranked among the hottest names on the stock market for years as these companies have been riding a wave of cyber threats and have easily acquired clients. Moreover, AI made them even hotter. These companies delivered jaw-dropping growth as businesses scrambled to protect their data from extremely sophisticated attacks.
Even in this environment, many are still posting very impressive revenue figures. Their services remain in high demand because cybercrime shows no signs of slowing down. Yet despite this strength, their stock prices have taken a nosedive this year. Unfortunately, there’s a lot of pessimism surrounding AI and connected themes like cybersecurity.
Wall Street is pulling back on these names, and the shift has dragged down some stocks that were market darlings just a few months before. It’s a good idea to look into the cybersecurity stocks that have been sold off the most, as there are likely buying opportunities here.
Methodology
For this article, I screened the worst-performing cybersecurity stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Important AI Announcements for Investors
SentinelOne Inc (NYSE:S)
Number of Hedge Fund Holders In Q4 2024: 47
SentinelOne Inc (NYSE:S) is a cybersecurity company that provides AI-powered services for threat prevention and detection.
The stock is down significantly so far in 2025 as it issued revenue guidance for the first quarter and full fiscal year 2026, which fell below Wall Street expectations. The company projected first-quarter revenue of $228 million and full-year revenue of $1.007 billion to $1.012 billion.
Both were lower than analysts’ estimates of $235.1 million and $1.03 billion, respectively. This disappointing outlook was attributed to intense competition in the cybersecurity sector and reduced enterprise spending due to economic uncertainty.
The consensus price target of $26.33 implies 32.57% upside.