And we are back on halftime with final trades. Jim's kicking it off with you. Loheed Martin.Uh regardless of what happens in Ukraine, countries all over the world are rearming and they're going to be buying Loheed Martin airplanes and missiles. Twice, we had a couple of analysts of the last couple weeks come down, downgrade Netflix calls Joe cared nothing about. I think that stocks paused now or continue going higher.Shannon uh Jim stole a little bit of my thunder. Industrial sector including defense and ae ...

Industry Overview - The content delivery network (CDN) space is expected to grow at a CAGR of 18.04% from 2025 to 2034, indicating strong industry growth potential [1][2]. Company Analysis: Cloudflare - Cloudflare focuses on global expansion and offers a high-performance CDN platform that enhances content delivery while ensuring secure web connectivity [3][4]. - The company employs advanced technologies such as tiered caching and Argo smart routing to optimize delivery efficiency [3]. - Cloudflare's revenue is significantly influenced by international sales, making it vulnerable to U.S. tariffs and competitive pressures from major players like Amazon and Akamai [5]. - Despite revenue growth, Cloudflare's margins are under pressure due to competitive pricing strategies and heavy investments in sales and marketing [6]. - The Zacks Consensus Estimate for Cloudflare's 2025 revenues is $2.09 billion, reflecting a year-over-year growth of 25.4%, while earnings are estimated at 79 cents, indicating a growth of 5.33% [6][7]. Company Analysis: Fastly - Fastly specializes in high-performance, programmable CDN solutions, providing customers with control through dedicated servers within private networks [9][10]. - The company emphasizes faster first-byte delivery and offers features like DDoS protection and advanced rate limiting [10][11]. - Fastly's CDN platform is designed for efficiency, with capabilities that reduce costs and enhance configurability [11]. - The Zacks Consensus Estimate for Fastly's 2025 loss is projected at 9 cents, indicating a year-over-year improvement of 25% [12][13]. Stock Performance and Valuation - Year-to-date, Cloudflare's stock has increased by 69.5%, while Fastly's stock has decreased by 26% [14]. - Cloudflare trades at a forward sales multiple of 28.19X, significantly higher than Fastly's multiple of 1.67X [15]. - Fastly is noted for its robust bottom-line growth expectations and comparatively lower valuation, giving it a potential edge over Cloudflare [17].

Core Insights - The cybersecurity landscape is rapidly evolving, with network security being a critical priority for enterprises globally. Fortinet (FTNT) and Check Point Software Technologies (CHKP) are leading providers of network security solutions, offering comprehensive platforms to protect organizations from sophisticated threats [1][2] Group 1: Company Performance - Fortinet is experiencing exceptional growth momentum across multiple business segments, with a unified SASE strategy gaining traction, leading to security service building growth exceeding 110% and unified SASE representing 25% of total business [4][6] - Fortinet's Quantum Force appliances have driven product revenues up by 14% year over year, with 73% of large enterprise customers adopting their SD-WAN solution, facilitating FortiSASE expansion [5] - Check Point's Quantum Force appliances show strong demand, with revenues exceeding the midpoint of guidance ranges, and the Infinity platform demonstrating over 15% of total revenues with strong double-digit growth year over year [8][11] Group 2: Leadership and Strategy - Fortinet is well-positioned for growth with a record free cash flow of $783 million and a margin of 51%, benefiting from an anticipated firewall refresh cycle in the second half of 2025 [6] - Check Point is under new CEO Nadav Zafrir's leadership, implementing a transformation strategy focused on growth and enhancing go-to-market capabilities, including a strategic partnership with Wiz for cloud security [9][10] Group 3: Financial Metrics and Valuation - Fortinet's Zacks Consensus Estimate for 2025 earnings is $2.48 per share, indicating a growth of 4.64% year-over-year, while Check Point's estimate is $9.91 per share, reflecting an 8.91% growth year-over-year [7][12] - Fortinet's shares gained 11.6% in three months, outperforming Check Point's 5.8% return, with both stocks trading at premium valuations; Fortinet has a price-to-sales ratio of 11.5x compared to CHKP's 8.91x [13][15] Group 4: Investment Outlook - Fortinet is identified as the superior investment choice for 2025 due to stronger revenue growth momentum, a better-positioned SASE strategy, and clear catalysts like the firewall refresh cycle [19] - Check Point offers stability and transformation potential but faces execution risks and a slower growth trajectory, suggesting investors may consider holding existing positions or waiting for more attractive entry points [19]

Core Insights - CrowdStrike Holdings (CRWD) shares have increased by 10.7% over the past month, outperforming the Zacks Security industry's growth of 4.6% and surpassing peers like CyberArk Software, Palo Alto Networks, and Check Point Software [1][10] - The company's growth is driven by strong enterprise demand for AI-native cybersecurity solutions and the Falcon Flex subscription model, which enhances customer commitment and revenue growth [2][4] Performance Metrics - As of the end of the first quarter, CrowdStrike reported an Annual Recurring Revenue (ARR) of $4.44 billion, reflecting a year-over-year increase of 22% [5] - The Falcon Flex model achieved a total deal value of $3.2 billion, with a sequential growth of 31% and over six times year-over-year growth [6][10] - The company added $774 million in total Falcon Flex account value during the first quarter of fiscal 2026 [5] Customer Adoption and Expansion - More than 820 customer accounts have adopted the Falcon Flex model, indicating strong market acceptance [6] - A significant expansion deal was secured with a Fortune 100 technology company, increasing its contract from $12 million to over $100 million [7] - A large healthcare provider also signed an eight-figure Falcon Flex expansion deal [8] Subscription and Revenue Growth - CrowdStrike's quarterly revenues exceeded $1 billion for the third consecutive time, marking a year-over-year improvement of nearly 21% [11] - Subscription customers using six or more cloud modules represented 48% of total customers, with 32% using seven or more modules [12] AI Integration and Partnerships - The Falcon platform is gaining traction as an "AI-native SOC," with partnerships with AI companies to enhance capabilities [13] - Collaborations with NVIDIA and Microsoft aim to secure AI systems and standardize cyber threat attribution [14] Cost Structure and Earnings Pressure - Research and development expenses have increased significantly, rising twelvefold over the last six fiscal years [15] - Sales and marketing expenses surged nearly ninefold to $1.52 billion in fiscal 2025 [16] - In the first quarter of fiscal 2026, sales and marketing and R&D expenses rose by 25.5% and 34.7% year-over-year, respectively, impacting earnings [17] Valuation Metrics - CrowdStrike is trading at a high price-to-sales (P/S) ratio of 24.55X, compared to the Zacks Security industry's 15.07X [19] - The P/S multiples for peers CyberArk, Palo Alto Networks, and Check Point Software are 13.6X, 12.97X, and 8.81X, respectively [22] Investment Outlook - The company is positioned well in the AI-driven cybersecurity market, but shrinking profits and high valuation suggest a cautious investment approach [23]

Core Insights - Fortinet's FortiGate platform is central to its secure networking strategy, driving hardware adoption and facilitating expansion into other solutions [1][10] - The launch of the FortiGate 700G series enhances performance and energy efficiency, appealing to mid-sized businesses and distributed enterprises [3][10] - Fortinet's product revenues grew 12% year-over-year in Q1 2025, with FortiGate hardware being the primary growth driver [4] Product and Market Performance - FortiGate firewalls are often the first product for customers, leading to increased integration of Fortinet's other offerings [2][10] - In Q1 2025, FortiGate hardware outpaced overall product growth, expanding in the mid-teens [4] - The company estimates product revenues for 2025 to reach $2.14 billion, indicating a 12.3% year-over-year growth [4] Competitive Landscape - Fortinet faces stiff competition from Palo Alto Networks and Check Point Software, both of which are experiencing strong adoption of their firewall capabilities [5] - Palo Alto Networks reported a 20% year-over-year growth in Software Firewall ARR, driven by public cloud deployments [6] - Check Point Software saw a 14% year-over-year rise in product and license revenues, with expectations of continued momentum through 2026 [7] Stock Performance and Valuation - Fortinet's shares have risen 11.1% year-to-date, underperforming the Zacks Security industry's growth of 23.4% [8] - The stock is currently trading at a Price/Book ratio of 40.17X, compared to the industry's 24.88X, indicating a lower valuation score [12] - The Zacks Consensus Estimate for Q2 2025 earnings is 59 cents per share, reflecting a 3.51% year-over-year growth [15]

Group 1 - The core viewpoint is that the recent U.S. bombing of Iranian nuclear facilities is expected to be absorbed by the tech stocks, eliminating a significant market risk factor [1] - The successful action against Iran's nuclear capabilities is seen as reducing the threat to the Middle East and Israel, which investors view positively for the market and tech stocks [1] - The expectation of potential cyberattacks from Iran is likely to boost cybersecurity stocks, with specific mentions of Palo Alto Networks, CyberArk, CrowdStrike, Zscaler, and Check Point [1] Group 2 - The company suggests that despite potential volatility and significant risk events in the coming week, investors should consider buying favored tech winners and core AI revolution stocks during geopolitical conflicts that weaken stock prices, including Nvidia, Palantir, Microsoft, Amazon, Oracle, and Tesla [2]

Core Insights - CrowdStrike Holdings (CRWD) shares have increased by 51.7% over the past three months, outperforming the Zacks Security industry's growth of 23.5% [1][9] - The stock has outperformed peers such as CyberArk Software (CYBR), Palo Alto Networks (PANW), and Check Point Software (CHKP), which saw gains of 29.1%, 14.8%, and 3.6% respectively [1][9] Financial Performance - CrowdStrike's quarterly revenues exceeded $1 billion for the third consecutive time in Q1 of fiscal 2026, reflecting a year-over-year growth of nearly 21% [5] - The company ended Q1 with an Annual Recurring Revenue (ARR) of $4.44 billion, up 22% year-over-year [11] - Non-GAAP earnings declined by 7.6% year-over-year to 73 cents per share due to rising costs [16] Subscription Model and Customer Adoption - The Falcon Flex subscription model has been a significant driver of customer growth, with over 820 customer accounts adopting it, leading to a total deal value of $3.2 billion [12][10] - Customers using six or more cloud modules represented 48% of total subscription customers, with 32% using seven or more modules [6] Strategic Partnerships and AI Integration - CrowdStrike has integrated its Falcon platform with NVIDIA's Enterprise AI Factory and partnered with Microsoft to standardize cyber threat attribution [8] - The company is focusing on expanding its capabilities through partnerships with other AI companies [7] Cost Structure and Investment - Sales and marketing expenses surged nearly ninefold to $1.52 billion in fiscal 2025 from $173 million in fiscal 2019, while R&D expenses increased 12-fold over the last six fiscal years [14][15] - In Q1 of fiscal 2026, sales and marketing and R&D expenses rose by 25.5% and 34.7% year-over-year, respectively [16] Valuation Metrics - CrowdStrike is trading at a high price-to-sales (P/S) ratio of 22.60X, significantly above the Zacks Security industry's ratio of 14.78X [19][22] - Compared to peers, CyberArk, Palo Alto Networks, and Check Point Software have P/S multiples of 13.96X, 12.94X, and 9.25X, respectively [22] Conclusion - The company is well-positioned in the AI-driven cybersecurity market, but shrinking profits and high valuation suggest a cautious approach for investors [23]

Industry Overview - The digital economy has elevated cybersecurity from a background IT concern to a top priority for businesses, as they face increasing cyber threats such as ransomware, data breaches, and phishing attacks [1] - The global cybersecurity market is projected to grow from $193.73 billion in 2024 to $562.72 billion by 2032, reflecting a strong CAGR of 14.3%, driven by the complexity of IT systems, tighter regulations, and the need to protect sensitive data [2] Technological Advancements - Traditional security tools are becoming inadequate against smarter and faster cyberattacks, leading to a shift towards artificial intelligence (AI) for proactive threat detection and response [3] - AI is being integrated into cybersecurity solutions to analyze large volumes of data, enabling companies to automate detection and response processes [3] Company Highlights - **CyberArk Software (CYBR)**: Focuses on identity security solutions, leveraging AI to enhance its leadership in the identity security space with innovations like the Secure AI Agent solution [6][8] - **Qualys (QLYS)**: Specializes in vulnerability management and cloud security, enhancing its AI capabilities to improve threat detection and remediation [9][10] - **Okta (OKTA)**: Concentrates on identity and access management, ramping up AI capabilities to address the complexities of digital identities, with innovations like Identity Threat Protection with Okta AI [12][13] - **A10 Networks (ATEN)**: Advances its AI-driven cybersecurity strategy through acquisitions and scalable solutions, positioning itself for growth in AI data center deployments [15][16][17] Market Positioning - CyberArk's unified platform offers critical capabilities for identity security, enhancing its market relevance and customer value proposition [7][8] - Qualys' AI-powered platform is expected to drive customer adoption and long-term revenue growth [11] - Okta's growing customer base, particularly among Fortune 500 clients, positions it as a compelling long-term investment [14] - A10 Networks is well-placed to benefit from the intersection of AI and cybersecurity, supported by strong margins and disciplined capital allocation [17]

Group 1 - The report provides an overview of the generative AI data security solutions market, highlighting its growth and segmentation by product type and application [2][3] - It includes a comparative analysis of global sales revenue for different product types from 2020 to 2031, indicating significant growth trends [2][3] - The report forecasts the sales revenue and market share for generative AI data security solutions in China from 2020 to 2031, showcasing the potential for market expansion [2][3] Group 2 - The analysis covers various applications of generative AI data security solutions, including finance, healthcare, manufacturing, and retail, with sales revenue projections for each sector [3] - It presents a detailed comparison of global sales revenue across different applications from 2020 to 2031, emphasizing the growth potential in each sector [3] - The report also forecasts the market share for these applications in China, indicating a robust demand for generative AI data security solutions [3] Group 3 - The report analyzes the market size of generative AI data security solutions across major global regions, including North America, Europe, China, Japan, Southeast Asia, and India, with sales revenue predictions [3][4] - It provides insights into the competitive landscape, detailing the market share and revenue of leading companies in the generative AI data security solutions sector [4][5] - The report includes a SWOT analysis of leading global companies in the market, assessing their strengths, weaknesses, opportunities, and threats [11] Group 4 - The report outlines the major companies in the generative AI data security solutions market, including Zscaler, Forcepoint, Palo Alto Networks, and Microsoft, detailing their market positions and product offerings [4][5][6] - It highlights the revenue and gross margin forecasts for these companies from 2020 to 2025, providing a financial outlook for key players in the industry [4][5][6] - The report discusses recent developments and strategic moves by these companies, including investments and mergers, which could impact their market positions [4][5][6]

Company Overview - Qualys shares have increased by approximately 8.4% over the past month, outperforming the S&P 500 [1] - The most recent earnings report is crucial for understanding the catalysts affecting the stock [1] Earnings Estimates - Fresh estimates for Qualys have trended upward, with the consensus estimate shifting by 8.18% [2] VGM Scores - Qualys has a Growth Score of A, a Momentum Score of C, and a Value Score of F, resulting in an aggregate VGM Score of C [3] Outlook - The upward trend in estimates suggests a promising outlook, leading to a Zacks Rank of 1 (Strong Buy) for Qualys, indicating expectations of above-average returns in the coming months [4] Industry Performance - Qualys is part of the Zacks Security industry, where Check Point Software has gained 4.6% over the past month [5] - Check Point reported revenues of $637.8 million for the last quarter, reflecting a year-over-year increase of 6.5% [5] - Check Point's expected earnings for the current quarter are $2.36 per share, indicating an 8.8% increase from the previous year [6]