Palo Alto Networks (PANW)

He likes the moat around the cybersecurity incumbents. Fears that Anthropic and AI would break cyber companies were overblown.

Is in a strong uptrend with higher highs since late February. Each pullback has been a fine buying opportunity with strong volumes. The Chakykin Money Flow shows strong institutional buying which surprised him in a good way. Are lots of options flows. The market is bullish.

Last Friday, the CEO bought $10 million of shares. Anthropic isn't a threat, but is really a tailwind. These cyber stocks won't jump tight back up in this difficult market, though.

After talking to tech CEOs, she doesn't believe AI will take over their business like PANW's but rather will get even more business as companies use more AI to code. Doesn't see the catalyst with PANW, but fundamentals are strong and product revenues and margins are growing. They will buy back $1 billion in shares. Trades at 10x price to sales (CRWD is at 25x). She will stick with it and will eventually buy more, though present weakness is frustrating.

He just bought more at $160. Expects cybersecurity stocks to embrace AI and does not expect Anthropic to take over this sector.

All cybersecurity sold off on earnings for some reason. More AI demands more cybersecurity, and since the Iran war, these stocks have been on a tear.

Earnings per share of $1.03 beat the $0.94 estimate, and revenue of $2.6B topped the $2.58B forecast. Revenue rose 15% year-over-year, driven by subscription and support sales (roughly 80% of total). Operating margins stayed around 30%, and RPO of $16.0B grew 23%. FY2026 guidance calls for 22-23% revenue growth and EPS of $3.65-$3.70. Investors found the profit outlook conservative despite strong results and raised revenue guidance, though this caution reflected integration costs from major acquisitions. They viewed the results as solid but noted the stock has declined with the broader software selloff. They would consider buying gradually at current levels while acknowledging potential for further downside. Unlock Premium - Try 5i Free

The price target is $210, and 77% of analysts have a buy rating, but the market thinks otherwise, as reflected in the declining price.

Guidance disappointed. Is -6% today and -16% for the year. It beat the top and bottom lines. They just closed Cyber Ark. AI was serve as a catalyst for cybersecurity stocks--companies will need cybersecurity, and the market misunderstands that.

They will solve the new cyber threats, but it will take time and money. This sell-off is probably a buying opportunity.

Is sticking with it, despite being town 14% this year. Is one of the two 2 cybersecurity stocks. Customers depend on it so much that he sees no AI disruption. In fact, AI gives criminals more tools to attack.

Other names in the space are more geared to large enterprise. This one does large, medium, and small companies. Cybersecurity is a difficult place. A lot of names went through support levels, just not the place to be right now. He'd absolutely lighten up.