Cybersecurity stocks such as CrowdStrike and Palo Alto Networks are set to de-rate in 2027 as Anthropic and OpenAI aggressively productize frontier models into cybersecurity. The whole cyber industry would face competitive risk and lose budget share. Frontier models have a tangible edge over apps in cyber, and the labs need such revenue to justify their valuations. Palo Alto's Nikesh Arora and CrowdStrike's George Kurtz may talk big now; their demeanor 12-18 months from now is the test. x.com  … Show more

Cybersecurity vendors CrowdStrike, Palo Alto Networks and Cloudflare face pressure from much cheaper AI security models such as Google's Gemini 3.8 Flash Cyber, about 85% cheaper and often better. Google's Chrome Security team found it produced 2.6 times more correct vulnerability patches than larger commercial models, Wiz measured 7.5-9.7% higher penetration-testing recall at 2.3-5.2x lower cost, and Google researchers used it to find a critical vulnerability in under two hours. x.com 

AI-powered attacks are spreading so fast that companies are unlikely to cut security budgets, even if they slow broader AI spending. The latest wave hit governments, banks, hospitals, grocery chains and businesses, while AI finds vulnerabilities and breaks in around the clock. That is why Cloudflare, Zscaler, CrowdStrike and Palo Alto Networks rose as broader AI concerns hit tech shares. x.com  x.com 

Hyperscaler cloud integration and frontier AI labs could take a fair bit of cybersecurity's economics. Rising AI-token budgets also make higher cyber spending a stretch. Palo Alto Networks, CrowdStrike and Cloudflare have nearly $1 trillion in market cap on less than $20 billion in revenue; even high-quality Palo Alto and Cloudflare look too expensive, while Okta looks indefensibly expensive. The theme has real demand, but these valuations look too high in the short to medium term. x.com 

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.com 

These twelve stocks could dominate the next era by meeting infrastructure and consumer demand. TSMC makes AI chips; Palo Alto Networks secures cloud; GE Aerospace earns engine-service revenue; IREN builds AI cloud; Broadcom supplies chips and networking; Intuitive Surgical sells surgical robots. Strategy offers bitcoin exposure; e.l.f. Beauty serves Gen Z; Robinhood expands finance; The Trade Desk serves advertisers; Walmart adds ads and memberships; Vistra powers AI data centers. x.com  x.com  … Show more

Security software is arguably more of an AI bubble than semiconductors. Firms are bid up to nosebleed multiples on moderate AI-related revenue acceleration while facing medium- to long-term risks from Microsoft, Google and the AI labs and a 10-year Treasury yield above 5%. Their forward P/Es rest on non-GAAP earnings that exclude large stock compensation. A reversal could come from results missing high buy-side bars, security share gains by Microsoft or Google, or AI lab security launches. x.com  … Show more

Cybersecurity is the real bubble right now, because greater importance in the age of AI does not justify paying valuations like 40x sales for names such as Cloudflare, CrowdStrike and Palo Alto Networks. x.com 

Usage-driven AI stocks are less exposed to frontier-model companies as the AI trade separates winners from losers. All rose, all will fall, and only some will recover; favor usage-driven over frontier-biased stocks. DigitalOcean is GAAP profitable; its token usage is a nonlinear revenue proxy. SiTime is GAAP profitable; robotics, defense and self-driving are each growing 50% year over year. CrowdStrike and Rubrik also do not rely on frontier models, though valuation is a concern. x.com  x.com 

Cybersecurity stocks such as Palo Alto Networks, CrowdStrike and Zscaler face a sea of red once pod shops absorb the AI-disruption risk, given the sector's valuations. Investors at Slow Ventures say they are increasingly convinced AI's first major victims will be these cybersecurity incumbents, whose security stack may not survive an AI-native threat world. x.com