SentinelOne (NYSE: S) eclipsed as the most valuable cybersecurity IPO when it went public in June 2021. But today, SentinelOne trades more than 50% below its IPO price and is worth 90% less than CrowdStrike.

SentinelOne lost its luster as its revenue growth cooled off, it stayed deeply unprofitable, and rising interest rates popped its bubbly valuation. Yet the bulls still claim its AI-driven automated approach to cybersecurity -- which cuts human analysts out of the loop -- will permanently change the way companies shore up their digital defenses.

I recently weighed the bull and bear cases for SentinelOne, and I said it still wasn't a compelling investment in this challenging market. Today, I'll review two other recent developments that can be considered a green flag and a red flag for its future.

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Source Fool.com