$FTNT (+2,02%) — The Legacy Play in My Portfolio
Fortinet is the cybersecurity equivalent of a bouncer who not only guards the door but also built the entire club from scratch, with proprietary tools he has designed over decades. Fortinet became famous with its FortiGate firewalls, powered by its custom-made chips, which allow the company to undercut prices through ownership of the value chain.
Over time, the company has evolved and created various applications in the cybersecurity environment, and the best thing is that they can offer clients the entire package – from network security to endpoint protection – without piecing together products from multiple vendors. Simplicity – something every company values and Fortinet perfected.
You don’t need the entire package? No problem. Fortinet’s other strength lies in its flexibility. Whether you want protection for your data center, basic virtual appliances, or completely cloud-delivered FortiSASE, Fortinet has you covered and can customize its product range to your needs. The big obstacle is the crowdedness of the cybersecurity space, where every company needs to prove consistently that it can keep up the pace.
Fortinet is a great one-stop shop for cybersecurity and well-established in the industry, but competition is fierce, which you always need to monitor. I believe in the company and think that we have a nice opportunity on our hands after the recent sell off.
$S (+1,4%)
— The Innovator for the Watchlist
Now we enter uncharted territory. A company I don’t own, even though I find it highly interesting. Funnily enough, it’s very much the opposite of Fortinet, which might explain its appeal: while Fortinet’s empire was built on hardware performance and a fully integrated platform, SentinelOne is a pure-play software assassin that lives in the cloud and on endpoints. Arguably the faster growing part of the cybersecurity sector, though this also comes with the major downside of uncertainty.
SentinelOne’s platform impresses with superior endpoint protection and utilizes AI to prevent, detect and respond to threats automatically. The company is a software-only play that boasts massive growth, though still unprofitable.
I don’t think the investment case for SentinelOne is as straightforward, since the company hasn’t fully established itself yet, but there is a case to be made that this could become one of the cybersecurity leaders in an AI-dominated world. While I am currently on the sidelines on this one, I could imagine an entry around $15.
$PANW (+0,75%)
$NET (+0,84%)
$ZS (-0,86%)
$CRWD (+0,33%)
