2 Cybersecurity Stocks You Can Buy and Hold for the Next Decade
Sunday, Jan 5, 2025 6:51 am ET
In the ever-evolving landscape of cybersecurity, two stocks have emerged as strong contenders for long-term investment: CrowdStrike (CRWD) and Palo Alto Networks (PANW). Both companies have demonstrated impressive growth and innovation, making them attractive options for investors seeking to capitalize on the expanding cybersecurity market.
CrowdStrike, founded in 2011, has quickly established itself as a leader in the endpoint protection and cloud security sectors. The company's unified platform, the Falcon Insight, offers a comprehensive suite of modules that cater to various cybersecurity needs, including endpoint protection, cloud workload security, identity protection, and data protection. CrowdStrike's AI-powered workflow automation and predictive analytics enable advanced threat detection and response, setting it apart in the competitive landscape.
Palo Alto Networks, founded in 2005, has built its reputation on next-generation firewall technology and has since expanded its product portfolio to include cloud security solutions, security operation platforms, and threat intelligence services. The company's Precision AI framework enables autonomous threat detection and response, driving its growth and market leadership.
Both CrowdStrike and Palo Alto Networks have strong financial performance metrics, with recurring revenue models that contribute to their long-term growth potential. CrowdStrike's subscription-based model allows customers to select the modules that meet their needs, leading to increased recurring revenue as customers consolidate their cybersecurity spend by adopting more modules. Palo Alto Networks' subscription-based services, including its AI-powered threat prevention and malware protection offerings, also contribute to its recurring revenue growth.
In terms of product portfolios and market positions, CrowdStrike and Palo Alto Networks address emerging cybersecurity threats and trends through their unique offerings. CrowdStrike's unified platform and wide range of modules allow it to tackle a broad spectrum of emerging threats, while Palo Alto Networks' focus on network security enables it to tackle specific challenges related to cloud migration and advanced threat detection.
Both companies' subscription-based models contribute to their recurring revenue and growth, as customers can choose the services that best fit their needs and budget. This allows CrowdStrike and Palo Alto Networks to generate stable, recurring revenue streams, which contribute to their growth and overall financial performance.
In conclusion, CrowdStrike and Palo Alto Networks are two cybersecurity stocks that investors can buy and hold for the next decade. Their strong financial performance metrics, innovative product portfolios, and recurring revenue models make them attractive options for long-term investment in the expanding cybersecurity market. As the cybersecurity landscape continues to evolve, these two companies are well-positioned to capitalize on emerging trends and opportunities, making them strong contenders for long-term growth and success.

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