CrowdStrike Holdings (CRWD)

He moved into CRWD on weakness. Really likes the space; attacks are only going to get more plentiful and more challenging. Stock's at a pivotal point, just peeked above the 200-day MA. Hard to say if it will get to the $400 level. In a limited space of competitors.

Is the #1 player in the industry. Is still -26% from its highs despite a 33% snapback. 

Still wouldn't go toward CRWD, as it needs to prove itself over a couple of quarters of earnings. 

The leader in cybersecurity, used by many Fortune 500 companies. He bought more on the recent drop following the major outage they caused. He will hold this long term, though the PE is high.

Took advantage of the recent chaos in the name and added a position. People will forget about the outage and come back to the name eventually.

A difficult one. It was one of his top picks, one of the top 10 in his fund. As soon as the plunge happened, he just got out of the way. Then the biggest question becomes, what to buy? He quickly did some homework and bought PANW and SentinelOne.

You're going to have to wait through 2-3 earnings seasons for them to get their mojo back. You could buy here around $265 and $250, shouldn't go under $240. But he'd rather wait for earnings season.

Upgraded today. Their management team can navigate a recovery. Cybersecurity stocks are back today. Don't trade, but invest in cyber. He's very bullish cybersecurity. Of the big three, though, Fortinet has the best balance sheet.

Added to her position. Best in breed. Trades at 22x EBIT-to-sales to 13x. Their data breach might weaken their next numbers--we'll see long-term in their next report.

Looking at the chart, if you still own it just ride it out. Legal ramifications still to play out from the upgrade fiasco. Much bad news already priced in. Don't buy in or add, still drama. If it comes through unscathed, stock could lift on the other side.

Historically, a good provider with key clients. Very good market share. Latest update caused huge issues, early days of knowing financial ramifications. Balance sheet and reputation affected. Be cautious.

It is a very tough decision. Sentiment of course is all negative, and the stock has lost $40B in value. But, headlines can still take it lower, and we are pretty sure more lawsuits are on the way. While we think it is getting interesting, we would still be cautious on overall position size, and conservative investors we think should trim some on risk alone. New buyers without a position we think could chip away on more weakness, slowly. In other words, we would see it as a HOLD right now, but only in a manageable position. It has $3B cash and some insurance, but is still at 56X earnings, and earnings growth is likely to fall off until this event is behind them. 
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Wouldn't touch it yet. Great company. After the news broke, he sold and got out of the way. You have to let it settle, focus on all the other great opportunities out there. Transition from CRWD to a competitor is going to take months, but it will happen.

See his Top Picks.

It's a disaster, but he appreciates their transparency. We will see another outage down the road by another company. There could be claims, but he sees today's pullback as a buying opportunity. He's watching $270 as support. He doubts there will be government intervention. The outage could trigger even more spending in cybersecurity.

CRWD has about 12% of the global market for end point security. Certainly the news is not good, but it is important to realize that this was not a security breach, but rather the company itself adding a software patch to existing customers. Of course, the outcome, i.e. a software shutdown, is largely the same and still a big expense and inconvenience for customers. There will be charges to fix this, and it could be a very manually-intensive fix. Lawsuits are possible. Competitors will use this as a way to try to win contracts from customers using CRWD. But, the stock will drop on the opening, but it will not be a fatal blow. Certainly it will damage reputation, but a security breach would have been worse, in our view. It will get a lot of media attention, but we think ultimately the company recovers over time. Its premium valuation multiple may diminish in the short term. If the problem can be fixed quicky, less damage will be done. It is probably going to create a buying opportunity in the stock, eventually, but as of now there is still too much uncertainty. 
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If you buy it today (down 10-12%), you're playing with fire. It's a big deal, a big screw up and she has no idea how this will end. This time of year, contracts are being signed.  A client now has the upper hand and could squeeze CRWD for a better deal. At 80x PE and 19x sales, there's zero room for error. Today is only the tip of the iceberg for CRWD, their clients and the industry. There could be government intervention.