US cybersecurity stocks are in the spotlight following a major attack on Microsoft’s on-premises SharePoint server that allowed hackers to infiltrate over 100 organisations worldwide, including government agencies and Universities.
MSFT issued an emergency patch, but there are still concerns about backdoors that remain and compromised credentials.
Jim Cramer, a former hedge fund manager and renowned investor, has named CrowdStrike, and Palo Alto Networks as two essential cybersecurity companies for investors seeking to gain exposure to the sector’s defensive core.
Take a look at the future of CRWD as well as PANW for investors.
CrowdStrike Holdings Inc. (NASDAQ:CRWD) is a great investment.
CrowdStrike is a leading cloud-native security company, offering endpoint protection via its Falcon platform.
Its modular subscription-based system allows customers to customize their security while still benefiting from AI threat detection.
You call George Kurtz (of CrowdStrike). “You say help me”, Cramer added, highlighting the reputation of CrowdStrike as a firm that can be relied upon in times of crisis.
CRWD offers a Falcon Flex Plan and a generative AI assistant named Charlotte. These features make CRWD more appealing to enterprises.
CrowdStrike, with over 29,000 clients, which includes more than half the Fortune 1000 companies, is in a good position to take advantage of the growing urgency for robust cyber infrastructure.
Cramer’s bullish outlook on CRWD is consistent with Wall Street, which rates the shares as “overweight”, with price targets as high as $500. This would indicate a potential 25% increase from their current level.
The cybersecurity stocks are already more than half higher than their year-to date low, which was in early March.
Why you should buy Palo Alto Networks Inc. (NASDAQ: PANW).
Palo Alto Networks provides a wide range of security solutions including network firewalls and cloud-based threat detection powered by AI.
Strata Prisma and Cortex are the platforms that serve over 80,000 global enterprise clients.
Jim Cramer, a renowned investor, recommends that you own PANW in light of the Microsoft hack. He also says Nikesh Arora is the CEO of Palo Alto Networks and he’s a trustworthy figure when it comes to security.
This week, he said to CNBC’s viewers: “You do not know whom you should call. Call Nikesh.”
Palo Alto Networks recently acquired Protect AI to enhance its ability to secure artificial intelligence applications.
Analysts predict that Palo Alto will grow its revenue at a rate of 14 percent annually compounded through 2027. This is due to the company’s aggressive M&A and next-generation service.
The consensus rating is “overweight”, with price targets as high as $250, which indicates that the stock could rise another 20%.
Palo Alto Networks is a good long-term investment for cybersecurity in the second halves of 2025.
The post 2 Cybersecurity Stocks You Must Own After Microsoft Attack may change as new information becomes available.
