Fund.TBD
Swing Trader, Technical/Fundamental Analysis
Cybersecurity looks set to boom over the next few years as AI capabilities like Mythos keep advancing. Investors have moved from treating all software as bad to favoring companies that help, work with or combat AI agents. By their charts over the past month, Fortinet, CrowdStrike and Palo Alto Networks look like the group's big three, and Fortinet held up regardless of CrowdStrike's and Palo Alto's results. x.comÂ
Money is flowing into cybersecurity as worries shift from vibe coding destroying these companies to threats like Mythos that make their help necessary. Fortinet, CrowdStrike and Palo Alto Networks are rising without offering easy entries, and cybersecurity ETFs show the same pattern. x.comÂ
Cybersecurity is the one software subsector where AI strengthens the story, because every AI gain arms both attackers and defenders, so spending only ratchets up. The market is forecast to grow from $189 billion in 2024 to $402 billion by 2034. Palo Alto sells consolidation: revenue grew 31% last quarter, and once customers platformize, switching costs become a fortress. Fortinet and Palo Alto rank first and second among software names in an 811-stock screen driven by institutional buying. x.com … Show more
Cybersecurity looks like AI's next major use case, making CrowdStrike, Palo Alto Networks and Okta stocks to own now. Nvidia CEO Jensen Huang said cybersecurity will be a major use case for AI, and that signal from Huang, more than any personal call, is the reason to pay attention to the group. x.com x.com x.comÂ
CrowdStrike and Palo Alto Networks are at all-time highs despite no real signs that AI is boosting cybersecurity, while Zscaler tumbled as mixed guidance overshadowed strong Q3 results. x.comÂ
Cybersecurity stocks have a powerful long-term tailwind because more AI means more complexity, more attack surface and more need for security. CrowdStrike, SentinelOne, Palo Alto Networks, Zscaler, Fortinet, Okta and Rubrik moved up strongly premarket after Anthropic CEO Dario Amodei published an essay arguing the AI industry should slow down, with Anthropic committing to give third-party evaluators permanent access to verify its safety measures. The market may be connecting those dots. x.comÂ
Palo Alto Networks, CrowdStrike and Fortinet, the cybersecurity leaders, are long-term winners in AI and won't be displaced by it. Palo Alto is up 23% this year, CrowdStrike 20% and Fortinet 48%, and it is no coincidence that their CEOs have been buying stock. x.comÂ
Anthropic and OpenAI's inevitable move into cybersecurity threatens CrowdStrike and Palo Alto Networks' valuations. They look like the market's biggest bubble stocks right now; CrowdStrike trades at 40x ARR despite 25% growth and negative GAAP EBIT. x.com x.comÂ
CrowdStrike and Palo Alto Networks should be enormous winners as agentic AI makes cybersecurity every enterprise's top priority, even ahead of AI investment. Threats from rogue internal agents and adversaries mean firms will rush to upgrade security, move to best-of-breed vendors and sharply raise budgets. Expected acceleration at leaders like CrowdStrike over the next 2-6 quarters looks far too low. CrowdStrike is the most advanced; Palo Alto is also favored, though some easy money is made. … Show more
CrowdStrike and Palo Alto Networks benefit from AI because it creates more security problems, so companies will need more advanced cybersecurity, not less. More than half of enterprise AI use happens outside IT oversight. Per JPMorgan, both are in good shape after Anthropic launched its Claude Mythos Preview security tool: instead of competing with them, Anthropic made them partners, which JPMorgan reads as a sign established vendors are essential to AI-driven defense, not replaceable by it. … Show more
Leading cybersecurity names Cloudflare, CrowdStrike and Palo Alto Networks look hard to own as AI threatens to collapse the industry. Together they generate $18bn of revenue on $550bn of combined market value, while Mythos has real potential to become the only cyber company anyone needs. x.comÂ
CrowdStrike may distinguish itself from an expensive cybersecurity group by showing more breakneck growth at earnings next month. Fortinet's slowing product revenue exposed how much relentless execution investors had priced into the group's extreme multiples, pulling CrowdStrike down in sympathy. CrowdStrike remains in a higher tier than Fortinet, which itself ranks above SentinelOne. x.com x.comÂ
