Performing some rebalancing of the portfolio after recent quarterly results. SentinelOne delivered a disappointing quarter, highlighted by some accounting issues in their ARR calculation. The investment thesis is still intact for this company, but it may take longer to realize. Their use of AI/ML to automate more aspects of security monitoring and response results in a low TCO. But, in this spending environment, CIOs are looking for consolidation opportunities to lower costs, like a broader platform offering from PANW or will settle for bundled solutions from MSFT. This posture will change as macro improves and SentinelOne expands their offerings. Additionally, security spend will remain resilient.

In the meantime, I took advantage of the price recovery to sell some of the position and re-allocate it to MDB and CFLT. Given the demand for data to fuel new AI-driven capabilities, I think these two companies (and SNOW) are well positioned.