CrowdStrike Holdings (CRWD)

He is bullish on cybersecurity since the whole sector will see a big pickup in demand. Developments in AI will result in problems as related to cybersecurity. Risk management should lead to a pullback in AI stocks. Although Crowdstrike has done a great job and has a great reputation, he has no strong opinion, He suggests owning a cybersecurity ETF.

He's holding onto his large position as he battles this volatility. Their CTO left, which pressured shares. Customer retention remains strong, though. The stock will find its way higher after this earnings report.

In the security space on the endpoint device management side. Generative AI is producing reams more data, which has to be protected. Around 40x PE, 7.5-8x revenue -- premium multiple. Pretty strong margins and growth profile. In the right space of adapting to AI. Expensive for a reason.

Trades at 15-20x revenue, so the market expects strong growth for five years without AI disruption or hiccups. Prefers MSFT at a much-lower PE.

(The theme of today's Top Picks is cybersecurity, which is going to be big deal. All of the AI systems will have to be made more secure. Each of today's picks has already had a good run.)

12-month price target of $192. Scale in and buy some here today, some more in the low $170s, and the final tranche in the low $160s. Very competitive area, but its advantage is its global reach. No dividend.

Their 4-for-1 split took effect today. Cybersecurity stocks are no longer treated like software. Their forward PE is 127x. Look at the software names more than the Mag 7.

Cloud services are using a lot of cybersecurity names, which reported good earnings. CRWD's balance sheet continues to improve.

He loves the cybersecurity space but the stock has become very expensive. He advises to take a trading position and trim. It went parabolic a couple of weeks ago so they sold 25% at $758

It's 90x EBITDA or revenue--either is lunacy. Where does it go from here? He can't buy it at these levels.

Just bought it. Though software is underperforming, cybersecurity is strong. He shouldn't have sold this last February. Is up 48% this year. He's buying the momentum now. Don't be afraid of price when momentum is such a factor.

It reports today. You can't replace CWRD with Anthropic for most companies.

He wants to get back into the cybersecurity space. AI threats are increasing cyber budgets for governments and businesses. It has secular growth. He will go back into PANW or CRWD.