2026 Outlook: AI and Cybersecurity Market Insights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy CRWD?
Source: Fool
- AI Market Growth: The AI market is expected to continue its growth trajectory in 2026, driving up demand for related technologies, thereby increasing the importance of cybersecurity, which necessitates greater investment from businesses to counter potential threats.
- Cybersecurity Market Potential: As AI technologies become more widespread, the cybersecurity market may experience even greater growth opportunities, with companies significantly increasing their spending on data and system security, thus enhancing the overall market size.
- Stock Market Volatility Analysis: The current stock market is experiencing turbulence, prompting investors to look for potential buying opportunities, particularly in cybersecurity firms like CrowdStrike, which is anticipated to rebound in price during market corrections.
- Investment Strategy Recommendations: The video outlines specific buy price targets that will provide investors with clear entry points, especially during market downturns, making it crucial to seize opportunities in high-quality cybersecurity stocks for long-term gains.
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Analyst Views on CRWD
Wall Street analysts forecast CRWD stock price to rise
34 Analyst Rating
23 Buy
11 Hold
0 Sell
Moderate Buy
Current: 429.640
Low
353.00
Averages
559.71
High
640.00
Current: 429.640
Low
353.00
Averages
559.71
High
640.00
About CRWD
CrowdStrike Holdings, Inc. is a global cybersecurity company that provides cloud-delivered protection of endpoints, cloud workloads, identity and data. Its Falcon platform is designed for cybersecurity consolidation, purpose-built to stop breaches. The platforms collect and integrate data from across the enterprise, including endpoints, cloud workloads, identities, and third-party sources. It offers 29 cloud modules on its Falcon platform via a software as a service (SaaS) subscription-based model that spans multiple large markets, including corporate endpoint and cloud workload security, managed security services, security and vulnerability management, information technology (IT) operations management, identity protection, next-generation security information and event management (SIEM) and log management, threat intelligence services, data protection, SaaS security posture management, automation and response (SOAR) and artificial intelligence powered workflow automation, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Cybersecurity Spending Increases, CrowdStrike Leads the Market
- Spending Growth Trend: According to Oppenheimer's channel check, cybersecurity spending in the U.S. and Europe increased last quarter, with CrowdStrike (CRWD) standing out as the clear market leader, indicating its strong position in the industry.
- Palo Alto Acquisition Expansion: Palo Alto Networks (PANW) is enhancing cross-sell opportunities through a series of acquisitions, including the completion of its acquisition of Chronosphere, which boosts its real-time monitoring and protection capabilities for AI applications, likely driving further market share growth.
- SentinelOne Performance Improvement: SentinelOne (S) demonstrated marked improvement in the last quarter, with partners reporting an average year-over-year growth of 20% and modestly raising their outlook for the first half of 2026, showcasing its enhanced competitiveness in the market.
- Market Competition Dynamics: CrowdStrike continues to drive growth in the core endpoint market by displacing legacy vendors, while Palo Alto enhances its AI agent capabilities through acquisitions, highlighting the intense competition between the two companies in the cybersecurity sector.
See More
2026 Outlook: AI and Cybersecurity Market Insights
- AI Market Growth: The AI market is expected to continue its growth trajectory in 2026, driving up demand for related technologies, thereby increasing the importance of cybersecurity, which necessitates greater investment from businesses to counter potential threats.
- Cybersecurity Market Potential: As AI technologies become more widespread, the cybersecurity market may experience even greater growth opportunities, with companies significantly increasing their spending on data and system security, thus enhancing the overall market size.
- Stock Market Volatility Analysis: The current stock market is experiencing turbulence, prompting investors to look for potential buying opportunities, particularly in cybersecurity firms like CrowdStrike, which is anticipated to rebound in price during market corrections.
- Investment Strategy Recommendations: The video outlines specific buy price targets that will provide investors with clear entry points, especially during market downturns, making it crucial to seize opportunities in high-quality cybersecurity stocks for long-term gains.
See More
Figma Launches AI Design Conversion Feature
- AI Design Conversion Feature: Figma has partnered with Anthropic to launch the 'Code to Canvas' feature, which converts code generated by AI tools into editable designs, aiming to enhance team efficiency despite the risk of AI tools potentially replacing design roles.
- Market Reaction: Since its IPO last summer, Figma's stock has plummeted approximately 85% from its 52-week high of $142.92, reflecting the broader malaise in the SaaS sector amid what traders are calling the 'SaaSpocalypse'.
- Industry Impact: As AI tools continue to advance, the design refinement step may be skipped altogether, posing a challenge to Figma's market positioning and potentially affecting its future user retention and market share.
- Upcoming Earnings Report: Figma is set to release its earnings report after market close on Wednesday, with high investor interest in how the company plans to navigate current market pressures and competitive dynamics.
See More
AI Disruption Hits Various Sectors in Stock Market
- Software Sector Pressure: The iShares Expanded Tech-Software ETF (IGV) has fallen nearly 16% over the past month due to fears that AI will diminish demand for software services, leading to a decline in investor confidence in the sector.
- Financial Sector Turmoil: The State Street Financial Select Sector SPDR ETF (XLF) dropped 4.8% last week, marking its worst weekly performance since April, as concerns over Altruist's new AI tax planning tool raised fears about the demand for financial services.
- Office Real Estate Impacted: Stocks in commercial real estate were crushed on Thursday amid concerns that AI could lead to rising unemployment, thereby decreasing demand for office space, reflecting a pessimistic outlook from investors regarding future market conditions.
- Logistics Sector Decline: Investors believe that AI could curb freight inefficiencies, leading to reduced demand for the logistics industry, resulting in a drop in related stock prices and showcasing widespread concerns about the impact of AI across various sectors.
See More
AI Disruption Concerns in Cybersecurity Market
- Cybersecurity Earnings Outlook: Palo Alto Networks is set to report earnings on Tuesday, providing CEO Nikesh Arora a chance to address investor concerns about AI potentially eroding market share in cybersecurity, although the overall market sentiment remains pressured due to a broader sell-off in the software sector.
- Financial Metrics Focus: Analysts expect Palo Alto to report quarterly revenue of $2.58 billion and annual recurring revenue (ARR) of $6.128 billion; despite a positive growth outlook, they have lowered the price target to $200, indicating caution regarding future profitability.
- Restaurant Industry Challenges: Texas Roadhouse will report its fourth-quarter results on Thursday, facing rising beef costs that have pressured margins, necessitating a careful balance between maintaining its value proposition and addressing inflation without alienating customers.
- Economic Data Watch: The personal consumption expenditures (PCE) index, the Fed's preferred inflation gauge, will be released on Friday, with the market hoping for positive signals on inflation trends to support rate cut expectations in the future.
See More
Market Turbulence Creates Small-Cap Opportunities
- Market Instability: After a prolonged period dominated by mega-cap tech, the market has entered 2026 on shaky ground, with the S&P 500 breakeven for the year and the Magnificent 7 stocks averaging a -7.3% return, indicating investor concerns about future profitability.
- Surging Capital Expenditures: As tech giants pour tens of billions into AI models, chips, and data centers, investors are increasingly worried about potential margin compression, even as companies like Amazon tout operational efficiencies and cost reductions.
- Small-Cap Appeal: Skepticism towards large tech firms is prompting capital to rotate into smaller companies, particularly those positioned as enablers of AI development, with Franklin Templeton suggesting that opportunities may lie with suppliers and adopters rather than the mega-cap leaders.
- AI-Resilient Stocks: Despite challenges faced by large-cap software firms, JPMorgan argues that the recent selloff has been too indiscriminate, creating opportunities in what they term
See More
Cybersecurity Spending Increases, CrowdStrike Leads the Market
- Spending Growth Trend: According to Oppenheimer's channel check, cybersecurity spending in the U.S. and Europe increased last quarter, with CrowdStrike (CRWD) standing out as the clear market leader, indicating its strong position in the industry.
- Palo Alto Acquisition Expansion: Palo Alto Networks (PANW) is enhancing cross-sell opportunities through a series of acquisitions, including the completion of its acquisition of Chronosphere, which boosts its real-time monitoring and protection capabilities for AI applications, likely driving further market share growth.
- SentinelOne Performance Improvement: SentinelOne (S) demonstrated marked improvement in the last quarter, with partners reporting an average year-over-year growth of 20% and modestly raising their outlook for the first half of 2026, showcasing its enhanced competitiveness in the market.
- Market Competition Dynamics: CrowdStrike continues to drive growth in the core endpoint market by displacing legacy vendors, while Palo Alto enhances its AI agent capabilities through acquisitions, highlighting the intense competition between the two companies in the cybersecurity sector.
See More
2026 Outlook: AI and Cybersecurity Market Insights
- AI Market Growth: The AI market is expected to continue its growth trajectory in 2026, driving up demand for related technologies, thereby increasing the importance of cybersecurity, which necessitates greater investment from businesses to counter potential threats.
- Cybersecurity Market Potential: As AI technologies become more widespread, the cybersecurity market may experience even greater growth opportunities, with companies significantly increasing their spending on data and system security, thus enhancing the overall market size.
- Stock Market Volatility Analysis: The current stock market is experiencing turbulence, prompting investors to look for potential buying opportunities, particularly in cybersecurity firms like CrowdStrike, which is anticipated to rebound in price during market corrections.
- Investment Strategy Recommendations: The video outlines specific buy price targets that will provide investors with clear entry points, especially during market downturns, making it crucial to seize opportunities in high-quality cybersecurity stocks for long-term gains.
See More
Figma Launches AI Design Conversion Feature
- AI Design Conversion Feature: Figma has partnered with Anthropic to launch the 'Code to Canvas' feature, which converts code generated by AI tools into editable designs, aiming to enhance team efficiency despite the risk of AI tools potentially replacing design roles.
- Market Reaction: Since its IPO last summer, Figma's stock has plummeted approximately 85% from its 52-week high of $142.92, reflecting the broader malaise in the SaaS sector amid what traders are calling the 'SaaSpocalypse'.
- Industry Impact: As AI tools continue to advance, the design refinement step may be skipped altogether, posing a challenge to Figma's market positioning and potentially affecting its future user retention and market share.
- Upcoming Earnings Report: Figma is set to release its earnings report after market close on Wednesday, with high investor interest in how the company plans to navigate current market pressures and competitive dynamics.
See More
AI Disruption Hits Various Sectors in Stock Market
- Software Sector Pressure: The iShares Expanded Tech-Software ETF (IGV) has fallen nearly 16% over the past month due to fears that AI will diminish demand for software services, leading to a decline in investor confidence in the sector.
- Financial Sector Turmoil: The State Street Financial Select Sector SPDR ETF (XLF) dropped 4.8% last week, marking its worst weekly performance since April, as concerns over Altruist's new AI tax planning tool raised fears about the demand for financial services.
- Office Real Estate Impacted: Stocks in commercial real estate were crushed on Thursday amid concerns that AI could lead to rising unemployment, thereby decreasing demand for office space, reflecting a pessimistic outlook from investors regarding future market conditions.
- Logistics Sector Decline: Investors believe that AI could curb freight inefficiencies, leading to reduced demand for the logistics industry, resulting in a drop in related stock prices and showcasing widespread concerns about the impact of AI across various sectors.
See More
AI Disruption Concerns in Cybersecurity Market
- Cybersecurity Earnings Outlook: Palo Alto Networks is set to report earnings on Tuesday, providing CEO Nikesh Arora a chance to address investor concerns about AI potentially eroding market share in cybersecurity, although the overall market sentiment remains pressured due to a broader sell-off in the software sector.
- Financial Metrics Focus: Analysts expect Palo Alto to report quarterly revenue of $2.58 billion and annual recurring revenue (ARR) of $6.128 billion; despite a positive growth outlook, they have lowered the price target to $200, indicating caution regarding future profitability.
- Restaurant Industry Challenges: Texas Roadhouse will report its fourth-quarter results on Thursday, facing rising beef costs that have pressured margins, necessitating a careful balance between maintaining its value proposition and addressing inflation without alienating customers.
- Economic Data Watch: The personal consumption expenditures (PCE) index, the Fed's preferred inflation gauge, will be released on Friday, with the market hoping for positive signals on inflation trends to support rate cut expectations in the future.
See More
Market Turbulence Creates Small-Cap Opportunities
- Market Instability: After a prolonged period dominated by mega-cap tech, the market has entered 2026 on shaky ground, with the S&P 500 breakeven for the year and the Magnificent 7 stocks averaging a -7.3% return, indicating investor concerns about future profitability.
- Surging Capital Expenditures: As tech giants pour tens of billions into AI models, chips, and data centers, investors are increasingly worried about potential margin compression, even as companies like Amazon tout operational efficiencies and cost reductions.
- Small-Cap Appeal: Skepticism towards large tech firms is prompting capital to rotate into smaller companies, particularly those positioned as enablers of AI development, with Franklin Templeton suggesting that opportunities may lie with suppliers and adopters rather than the mega-cap leaders.
- AI-Resilient Stocks: Despite challenges faced by large-cap software firms, JPMorgan argues that the recent selloff has been too indiscriminate, creating opportunities in what they term
See More
