SailPoint Breakout Possible? SAIL right over the AI Agent security target catalyst? #mxux $sail

This is MXUX. This is a video about sale point. The the symbol is sale. Uh this is a cyber uh security stock AI and network security but specifically a um stock uh who who uh identifies the ident makes identity passes for AI agents and uh verifies who the agent is and where they came from and so forth. much like uh you know a barcode security door entrance and so forth for AA. I think it has potential. I think it's a watch list item right now and I think there are uh factors that make it very attractive uh as a potential breakout. I'm going to go into this in the in the video, but I think one of the main problems they have is they can't meet demand. They don't have enough people uh in the field installing this software which I think is a good problem. All right. Uh give you about 15 minutes. I'll tell you about this. Okay. This is Sailpoint Technologies. This is stock TA kind of an AI technical analysis program I just love to use. You just enter the symbol and it it'll show you. We got two green candles. I'm updating this from yesterday. Um, here's our close today. We've got 1998. Looks like up and down. Not just barely a gain. Change is 10 cents. Uh, or is that? Yeah, that's 10. 10. No, that's one. What? 10 cents. 10 cents. Uh, so this is the this is the thing here. We've got an overall bullish. We've got an intermediate term technical analysis very bullish on this stock and a long and a long-term is bullish. And we've got a lot of green here in our different indicators. A lot of them are totally green. So, um you can look at this yourself and this is the latest news. Looks like we got one neutral uh on this uh news analysis. So, uh we've got um resistance uh is uh oh 1999. So, it looks like uh we're right at overhead resistance and support is 1877. So, we're doing all right on the chart. Uh I think the stock could be poised uh for a breakout. How high and how hard? I don't know. It's interesting. It's it's a niche product in AI security. Uh and they have uh made acquisitions and they have compute that they've purchased and they have some debts and so forth. But the thing is um the people qualified to install this uh that have any meaningful experience are in high demand and there aren't many of them. And I think that's what's holding up uh a breakout on this stock. I think that's a good problem. Um, let's take a look at what uh the rest of the analysis says now with the sale point. Um, let me just switch screens here. This is one of the catalysts for the stock. We had the recent AI scare about agents taking over the world and that's certainly uh AI agent security is a big deal. AI security in that aspect and identity which is sale point's thing is a big deal. This is the hugging. This is open AI and this is their report which I'm going to show you a brief interview on rather than reading this thing on the hugging face incident where a team of agents a swarm of agents escaped and hacked hugging face and so forth. And you can go on chat's website and you can you can read this. But you can see this. The point here is this is a much bigger deal than it was made out to be initially. And I said, as I said, rather than going over all this again, let's just uh play a brief uh clip, a short on just how extensive this was. >> Company servers. So, what we thought, but just a couple hours ago, OpenAI released their technical report of their analysis of what actually happened. And turns out it is so much worse. It is so crazy what happened. So, turns out it wasn't an AI agent that broke out of containment. It was 700 of them working as a swarm. 1,200 agents over multiple months had been conspiring and working together through a secret message board that they planted inside of opens infrastructure without anyone's knowledge to build up the necessary tools to escape. And then ultimately 700 of those over 10,000 agents were took part in the actual attack against the other company. >> What the [ __ ] Good place to start. >> And uh this uh just let this play in the background here. A BBC report on the um AI kurfuffle of the day about the kill switch needed uh for AI getting out of control. Uh again, Sailpoint and they work with CloudFare Flare and Palo Alto Networks. They're all working in conjunction with them, but uh they're focusing in on um building databases of agent identity and basically um creating ID tags for uh AI agents. So whether it's human intelligent intelligence that needs the ID badge or artificial intelligence, this is the biwick, the wheelhouse of sale point and I think they're right over the target. Um these discussions are ongoing here about this topic as well. But all of this is pointing to um the need for you know I think the most basic security is securing the identity of who's coming on and leaving your network and on your network and what permissions they have. I think this structure is key and I think sale point is at a good point to get a share count, but I would advise you put this on your watch list. Um, I'm not a financial adviser. Do your own DD, but I'm just saying they seem to be right over the target on this. And let's uh now move on to some basic analysis I did on this uh particular company. Now I did I did a little research on on I like Grock. I use Grock. But anyway, um based on prior to close information, they gave it a hold. uh they said medium to long-term buy. They they don't recommend a buy. Grock does. However, uh I went through and I asked the biggest weakness persistent gap on profitability and elevated spending commitments and uh de despite scale. So they're scaling you know uh they have taken on large multi-year cloud purchase commitments. I see this as a plus. Okay. 700 million. Okay. Uh that to me is a posit tip because no one's going to make it without uh cloud and other uh compute. Uh but uh the other thing that uh they said was there was a purchase uh the the acquisition of Entro um which cost them uh what's here a total of 100 about 130 million. So they just completed this and they did an SEC filing on acquisition of Ventro, a Tel Aviv based cyber security startup specializing in nonhuman and secrets credential security. Wow. Is that right? On the daily news approximately so they got about 130 million in this. Entro is cloud-based platform focused on discovering, mapping, and securing non-human identities and secrets. Okay, this is, you know, hugging face, open AI, the recent panicky statements about rogue AI. This is what uh salepoint's all about. So strategic rationale uh salepoint acquired intro to strengthen its capabilities in the rapidly growing area of machine identities AI agents and agentic identities. So this is you know just just what we want. It complements celloint's own uh agentic fabric solution. So, if you want to keep people out of your system, let's say electronic agents, you know, they got to log in. Anyway, I think Sale points right on the money here. And it it it uh it represents uh a good entry point on the stock price because it's sub $20. So, you can take a meaningful position. Strong secular growth in recurring SAS and identity security demand accelerated by AI nonhuman identity trends. This is right on trend. Okay. And they are growing. I don't I don't know if I'm going to go over the financials particularly, but they they're they just went public a year ago. It's what you'd expect. And um you know it's not terrible, not great. However uh they are over the target uh with the services they provide and they are working with Crowd Strike and PaloAlto uh in a complimentary way. So strong secular growth in reoccurring SAS identities and and and demand. So, um, of course, and after these recent, uh, statements, uh, about identity and the hugging face incident. I think I'm going to put a clip in about that. That's right. Right on over to Target. I have another reason to be I personally am bullish on this stock, although I'm not recommending a buy. I'm talking about a watch list. Uh, I may take a small position. Uh but uh I got my own insights into this and I'm going to share them in a minute. Okay. So here's the rub uh in my um estimation on this. This is this is from Grock, but uh I was watching some uh listening to some recruiters talking about Sailpoint consultants are like hens teeth and they're garnering top wages. And I think this is the only limiting factor in the growth of this company. Uh the demand is there. They just uh are having trouble. It's like um you know when Java first I actually did some recruiting in it in my career and you know when Java first came out and so forth I'm dating myself there these guys but [clears throat] in other words um this is a function I mean there isn't anything holding them back but uh the demand's there is there over the target they just don't have enough consultants out in the out in the wild. Uh, and this is about the saleoint consultants. Are they in short supply? Yes, moderate to significant shortage, especially for experienced people. Broader identity and access management has a well doumented skills gap. Open uh identity management roles in the US have have been in the tens of thousands. Okay, so if you're looking for a career, this is what you want to get into. Gentic identity management uh with growth of 30% plus a year over year year-over-year in recent periods and I think this after the recent hugging face and the recent Dario statements on AI is going to kill us all is even higher sale point specific demand is healthy hundreds of active postings identity now ISC engineers consultants architect architects growth is particularly strong in cloud software as a service implementation. They're just purchasing this large cloud uh compute purchase. This is why growth is particularly strong in cloud and machine nonhuman identity work. of course this is what they specialize in uh or what half you know this is one of their specialties qualified candidates for senior role are relatively low meaning they ain't got many uh compared with general cyber security so these guys are even more rare than general high turnover and special and the specialized nature of deep sale point especially custom rules complex connectors role modeling and now agentic NHI capabilities uh keep supply tight. So they do nonhuman and human uh security. So anyway, I'm just saying certified professionals with hand-on imple implementation experience especially on identity security cloud which is their expenses are showing where all their growth is going to be are the most soughtafter and command premium rates. So the point I'm making here is uh they've got good problems. Okay. And I don't know like uh I don't know what the training you know there's an experience pipeline here. These are legacy guys. I think this new AI identity AI agent identity is a new thing. Uh but um there's no demand problems here. Okay, so [clears throat] just to close this out, this is the Sailpoint um uh website. And of course, they're going to do a lot of puffery and stuff here, but uh anyway, just to give you an idea of what we're looking at here, one platform to secure every identity. So you know that's human and non-human intelligence adaptive identity powered in real time okay yada yada blah blah blah blah uh and then real time security for AI. I mean this as I said I I I think from my understanding is uh you know right over the target right now. Um, okay. Always be closing. All right. Yeah. Uh, here's some of the clients they have. Curries. Don't know what that is. GM, Hershey, Legal in General. I think that's a bank there. Anyway, uh, the Tombstones. Um, 300% ROI in two years. You know these numbers don't mean much really but to give you an idea this is very interesting. The choice of industry leaders 53% of the Fortune 500 are Salepoint customers I don't know are they working with Oracle you know are they going to get bundled? Are they going to get bought? We don't know. But I don't think uh and see they they just went public in 25. They were doing cyber security for humans before this uh you know passwords or whatever credentials and so on. Um uh maybe we'll click on this uh highest and career leadership compass uh sale point leads in DC's 25 identity security marketscape. Let's take a look at that. What the heck is it? Uh oh. Okay. This is some crap uh sales lead generator. Anyway, the point is uh I think the main bottleneck here is consultants to implement. So that is a function of time and as we know everything is accelerate accelerating faster and faster in it and AI. Now you know are they going to develop some uh AI to help them deploy quicker? That I think is the question. Okay, just to get a last minute uh stock price here. This the market's closed. This is 9:15 and that closed price about held 1998. Um this is how trading was today. Started lower. The whole market did and then it popped up. Um some basic stats. Okay. Uh the market cap and everything. Um BUG is a cyber security ETF. Uh they have a 17% holding in sale and they just increased at 63% 4.5% weight and um Phil has some uh shorts at short interest. I'm not going to worry, you know, all that kind of stuff. I think um it's going to be trumped by uh news on security implementation and just to see here what do we got? Uh our big volume on the options is at 2250. So uh that's it with sale. Uh as I said I think uh this is one for your watch list. There could be a breakout. So, we've got an alert, of course, high technical rating, which stock also stockta.com. I really do like that program, that app. Anyway, this is MXUX. I think this is one to watch. I don't know if we got a takeover here. Uh but um we could have a bust out to the upside but uh their li their bottleneck right now now is not having enough people I don't believe to install and you know it may take six months uh to get that queue up and so forth and for people to gain experience um or they may develop AI to implement uh their installations. Anyway, this is MXUX. Good luck in the market.