Cybersecurity’s Gilded Cage

The pursuit of security, it seems, is the most insecure of all investments. Oppenheimer, those diligent observers of the market’s whims, have recently ventured forth with their ‘channel checks’ – a rather prosaic term for discerning whether the emperor truly wears clothes, or merely a cleverly constructed illusion of protection. Their findings, as always, are a study in the art of plausible deniability, though they do illuminate certain firms with a distinctly brighter glow.

Two companies, CrowdStrike and SentinelOne, have emerged from this scrutiny with a semblance of grace. One might say they’ve managed to avoid the pitfalls of mediocrity, though, naturally, success in this arena is fleeting, and often more a matter of perception than genuine innovation. Let us, with a touch of cynical amusement, examine their fortunes.

CrowdStrike

CrowdStrike, long the leader in this peculiar race to safeguard digital realms, appears to have maintained its momentum. They’ve weathered a rather inconvenient IT outage – a momentary lapse in their own fortress, if you will – and are now showing signs of renewed vigor. One suspects a touch of marketing artistry was involved, but then, what great enterprise does not rely on a carefully curated narrative?

Oppenheimer’s channel checks reveal a positive sentiment among their ‘VAR’ partners – those purveyors of digital defenses. They’ve revised their expectations upwards, a testament to CrowdStrike’s ability to supplant the antiquated safeguards of yesteryear. They excel, it seems, at convincing clients that the old is truly obsolete, and only their solutions offer true salvation. A rather effective strategy, though hardly original.

Their ‘Falcon Flex’ licensing model, a clever bit of financial engineering, allows customers access to a full suite of cybersecurity tools, paying only for what they deem necessary. It’s a bit like offering a lavish feast, then presenting a bill for only the morsels consumed. And the credits issued after the outage? A masterstroke of public relations, transforming a misfortune into an opportunity to showcase their latest innovations. It proves that even in the realm of security, appearances are everything.

The only blemish on their gilded reputation is valuation. Trading at a rather extravagant price-to-sales multiple, one wonders if the market has mistaken aspiration for achievement. It’s a cautionary tale, of course; the higher one climbs, the further one has to fall.

SentinelOne

SentinelOne, on the other hand, presents a more intriguing proposition. One needn’t fret over valuation, as it remains remarkably affordable. A rare virtue in this age of inflated expectations. And despite its modest price, it’s experiencing robust revenue growth. A delightful anomaly, though one suspects it won’t last.

Oppenheimer’s channel checks reveal a marked improvement in sentiment. Their VAR partners, previously adrift in a sea of uncertainty, are now exceeding expectations. They report high-20% growth and a cautiously optimistic outlook for the coming year. Most notably, they praise SentinelOne’s ‘Purple AI’ as a superior autonomous security operations center, even surpassing CrowdStrike’s offering. A bold claim, naturally, but one that deserves attention.

With strong technology and accelerating revenue, SentinelOne appears remarkably undervalued. If momentum continues, the stock could offer substantial upside. It’s a reminder that in the market, as in life, the most promising opportunities are often hidden in plain sight. One simply needs a discerning eye – and a touch of cynicism – to uncover them.

2026-02-22 16:12

CrowdStrike

SentinelOne

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