Josh Brown, CEO, Ritholtz Wealth Management CrowdStrike Holdings CRWD-Q BUY May 07, 2025

HOLD; CRWD reported earnings yesterday. Q4 results were solid but the guidance was less than expected. The company is likely being conservative, but operating expenses rose and we would like to see this settle in. We will have more quarterly comments to be posted before the opening tomorrow.
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There's no shortage of cyber attacks and threats. That's why CRWD hit a high of $455 on Feb 19. Since then, shares have plunged to $308. He was selling, but today he bought back shares which are back to last summer's levels when they caused a massive worldwide outage. EPS guidance was light, but that reflected a higher tax rate ahead. Are already seeing a big return from AI, helping them catch hackers and reducing working hours by employees (labour savings). They beat earnings and revenues and delivered record cash flow. He bought more on today's weakness.

They caused the global outage last August. He targets $408. He doesn't sell or buy all at once, but in thirds. So, if you wish to sell, sell a third of your holding and buy a better peer, Sentinel One.

Always expensive, but his research discussions show that it's the best at what it does (endpoint security). In hindsight, should probably always buy on dips. Great company, though valuation is hard to swallow. Overall security software space is very attractive -- one of the most defensive parts of the software industry.

He sticks with PANW.

It reports Tuesday. We just had 3 cybersecurity companies report weak quarters. CRWD shares are above the last quarter when it missed and slumped. But he believes in it--if they survive that massage outage, you should own this. 

They reported a solid quarter yesterday but shares slid 5.77% today. Well, the stock came in hot, rallying 64% from the April lows. It was priced for perfection. The report delivered in-line sales and an earnings beat, but next quarter's guidance was light. He raised his price target--the quarter was good.

Cybersecurity is the utility of technology, a necessity. Not economically sensitive, so won't get a big boost in a strong economy. But it's very consistent.

He owns this and a cyber ETF. Expectations in the group are high, and the multiples aren't cheap. He doesn't actually have a ton of tech exposure right now, having moved to more economically sensitive names.

Is the top cybersecurity stock. They just accredited to get more involved in US operations, a huge market. He has used this as a source of funds, like selling in May.

CRWD and PANW are volatile, but demand is so strong for cybersecurity that these are long-term winners.