Weng
Co-Founder of Revealera, Hiring & Technology Trends
Cloudflare has three AI-driven trends working in its favor. AI will uncover more vulnerabilities; protection against more AI bots, agents and crawlers is needed; and its developer platform, including Workers, is becoming the default for agent-related development. CrowdStrike is not a favorite. x.comÂ
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.comÂ
Cloudflare's Workers adoption and AI-agent traffic growth support staying long for much longer, though the stock is expensive now. More than 10 million developers build on Workers, up from 7.4 million the prior quarter, while daily AI-agent requests on its network rose over 1,700% in a year. x.comÂ
US pressure on AI firms to improve detection puts cybersecurity, including CrowdStrike, in focus. An official said the US has made that demand clear. x.comÂ
Cloudflare shares should keep rising as AI-agent traffic lifts demand for edge compute: Oppenheimer reports rising contract values and Workers adoption, with stronger Bot Management and API Shield attachment, and expects Q3 to beat guidance. x.comÂ
AI agents expand the enterprise attack surface, creating demand for cybersecurity and agent-aware defenses. The PHP2Shell vulnerability discovery underscored AI's role in finding and exploiting flaws; prompt injection, machine identities, model supply chains and data exfiltration add risks. Morgan Stanley called cybersecurity a major structural winner as model supply explodes. x.comÂ
CrowdStrike's selloff after Anthropic rolled out a new safety feature was an overreaction, which was obvious to anyone who read Anthropic's release and knew CrowdStrike. x.com x.comÂ
Cloudflare looks attractive as more AI agents bring more traffic for it to route, secure and bill. Its recent dips have reversed, while the agent-driven traffic opportunity is the business case. x.comÂ
Cloudflare is an agentic AI and cybersecurity name whose weekly blue-candle signals have paid well for 24 months, and it is hugging its upper Bollinger Band again. Dario Amodei's letter may give it another boost. The key for cybersecurity companies is integrating LLMs well into their ecosystems. x.com x.comÂ
CrowdStrike and Palo Alto Networks win either way on AI. More AI means more attack surface, while less AI means budgets rotate back to security. x.comÂ
CrowdStrike's AI risk is limited but real, because it is tied to white-collar workers and their devices. A prolonged fall in white-collar employment could cut Falcon agents deployed, and an advanced AI that clearly solved big parts of cybersecurity could squeeze budgets. Against that, its core has been machine learning from day one, and AI raises security spending as attackers use it; its CEO says Charlotte usage rose over 6x. It trades at 21x EV/ARR with ARR up 24% and 0% GAAP operating margin. … Show more
