CrowdStrike Holdings (CRWD)

He's been in this name before, but doesn't own anything in the space right now. All the names are pricey. A larger player, but it's not inexpensive.

Likes cybersecurity theme, as threats will only grow in the future and get more costly. Fairly volatile, so he trades it. Now at 200-day MA, where there's been some support. Chance of a small rebound. Trades at 98x forward PE for 17% EPS growth. All these names trade at a premium.

Yesterday, it reported a good quarter, apart from a soft revenue outlook, including an earnings beat. Shares initially fell, then bounce back. 

Trades at a high PE, but they lead cybersecurity, a massively growing business. He bought in June 2024 at $306, then they caused a massive outage to plunge shares to $230, so he bought more.

Up 135% from the outage last summer and up nearly 40% before that outage. Cybersecurity is essential and CRWD is well-run. An amazing turnaround.

It was downgraded today, but share have had a massive comeback since last July's outage. The CEO spoke to many customers to keep most of his business. He expects the company will get contracts out of the companies he offered discounts to last summer.

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

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.

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.

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.

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. 

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.

Earnings missed, though self-driving cars are their single-biggest opportunity. He just added more Uber and Crowdstrike that he's owned for years. CRWD is one of the best performers on the S&P this year; they had a lot of ground to make up for and has returned to past levels, pre-outage. They saw a 23% increase in annual recurring revenue, a key metric. Shares are 26% above their 200-day, so firmly in a long-term uptrend. Another super quarter by CRWD.

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.

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.