Cybersecurity leader CrowdStrike Holdings (CRWD) is poised for further gains despite an impressive 80% rally since mid-April, according to Virtus Investment Partners’ Joe Terranova. He highlights strong demand driven by AI adoption and rising cybersecurity concerns as key factors supporting the stock.
Terranova advises investors to “buy the momentum,” emphasizing that current market sentiment and the underlying demand for robust security solutions make CrowdStrike an attractive buy, even after its significant price increase. He suggests that recent pullbacks present a good entry point.
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Virtus Investment Partners chief market strategist Joe Terranova is bullish on CrowdStrike Holdings (CRWD), despite its significant 80% surge since April 10. He believes the cybersecurity stock still has room to grow, citing strong demand for security solutions fueled by the widespread adoption of artificial intelligence.
Terranova stated on CNBC's 'Halftime Report' that the current momentum in CrowdStrike makes it an attractive investment. "I'm buying the momentum," he said. "You can't be afraid of price when the momentum factor is in control."
The increased interest in AI has raised concerns about potential software hacks, driving demand for cybersecurity services. This trend was further amplified after Anthropic unveiled its new AI model, Mythos, on April 7, sparking fears of more sophisticated and damaging software breaches.
The Global X Cybersecurity ETF (BUG) has seen a 48% increase since April 10, reflecting the broader market's positive sentiment towards the sector. CrowdStrike itself has rallied 83% in the same period.
Despite some recent profit-taking and a general rotation out of technology stocks causing CrowdStrike to pull back nearly 12% from its 52-week high of approximately $785, Terranova sees this as a buying opportunity. He noted that positive sentiment is building around the stock, making it a compelling prospect for investors.
