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Feb 17
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$408.85
$408.85
+0.0%
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LONG
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Dan Ives
Star Analyst at Wedbush
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"Cybersecurity is now not 5 to 8%. You could argue from everything we're seeing, 20, 25% of now the potential budgets... I think is being mispriced, that AI is a headwind where in fact, I think it actually is going to change the view of the sector." Investors fear that AI tools (like Anthropic) will replace traditional software and security vendors. Ives argues the opposite: the deployment of AI use cases requires massive "end-to-end" security infrastructure, effectively tripling the addressable budget share for leaders like Palo Alto and CrowdStrike. He cites M&A activity (specifically mentioning a deal involving CyberArk and Palo Alto) as proof of this platform shift. LONG. Ives explicitly calls PANW a "double table pounder" and identifies CRWD and ZS as top picks that will benefit from this inflection point. The sector is currently "guilty until proven innocent" with negative sentiment; risk of earnings upsets (as seen previously with PANW); market skepticism regarding the timeline of AI monetization. |
CNBC
Cyber security is going to be a huge growth a...
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