13 High Growth Cloud Stocks to Buy

2. SentinelOne, Inc. (NYSE:S)

3-year Revenue Growth: 58.89%

Number of Hedge Fund Holders: 42

Goldman Sachs lowered its price target on SentinelOne, Inc. (NYSE:S) to $16.50 from $19 on January 28 while maintaining a Neutral rating, pointing to broader valuation adjustments across the software sector. In its research note, the firm highlighted expectations for accelerating software M&A activity in 2026, driven by compressed public market valuations and the structural strengths of software businesses, including data advantages, embedded customer relationships, and scalable distribution. Goldman noted that this environment could create opportunities for value creation through acquisitions and portfolio synergies, particularly for established SaaS platforms.

Operationally, SentinelOne, Inc. (NYSE:S) continues to post solid growth. During its Q3 FY 2026 earnings call, the company reported revenue of $259 million, up 23% year-over-year, with international revenue growing at a faster 34%, underscoring expanding global adoption. The company also announced the $225 million acquisition of Observo AI, aimed at strengthening its data pipeline capabilities and enhancing its AI-native security operations, a move that aligns with growing enterprise demand for integrated data and security analytics.

Founded in 2013 and headquartered in Mountain View, California, SentinelOne, Inc. (NYSE:S) is an AI-driven cybersecurity company focused on autonomous protection across endpoints, cloud workloads, and identity environments. Its Singularity™ Platform is designed to deliver real-time, automated threat detection and response. While near-term valuation pressure remains a consideration, SentinelOne’s international momentum and strategic investments in AI infrastructure position it to participate meaningfully in both organic growth and potential industry consolidation.