Kurtz George sold $4.6M of CRWD

CrowdStrike (CRWD) and Palo Alto Networks (PANW) rose 2% after Cloudflare reported 39% revenue growth and raised its full-year outlook, citing escalating digital threats. Cloudflare's CEO attributed growth to increased security needs. Palo Alto and Zscaler (ZS) are also up ahead of their earnings reports.

CrowdStrike (CRWD) plans to acquire Fiddler AI and Dreadnode to expand its AI security portfolio. Dreadnode offers automated AI security testing, while Fiddler provides AI agent observability. Both are expected to enhance the Falcon platform and close in Q4 FY2027. CRWD shares are up 64.1% YTD, trading at a forward P/S of 35.05, with earnings growth estimates of 35.5% and 28.2% for FY2027 and FY2028, respectively.

CrowdStrike agreed to acquire Dreadnode and Fiddler AI to enhance its cybersecurity platform with automated red-teaming and behavioral observability. The deals, expected to close in Q4, will add capabilities to test and monitor autonomous systems. Dreadnode focuses on pre-release security testing, while Fiddler AI tracks software performance and costs. Both companies' technologies will be integrated into CrowdStrike's Falcon platform, launching in Q4 2027.

Palantir (PLTR), CrowdStrike (CRWD), and Okta (OKTA) stocks fell 10%, 9%, and 10% respectively, as Wall Street retreated from AI-related software investments post-election. Palantir's market value dropped by $40B, and its stock is down 13% YTD. The declines follow strong YTD gains for these companies, with Okta up 98% and CrowdStrike up 86%. Palantir's Q3 earnings beat expectations, with revenue up 96% YoY, but political risks and high valuations may pressure the sector.

CrowdStrike Holdings Inc (CRWD) fell 8.8% to $219.90 amid a tech sector selloff due to election-driven regulatory concerns. Insider sales and high valuation exacerbated the decline, despite positive analyst ratings and AI security acquisitions. The broader market saw tech stocks underperform.

Cloudflare introduced AI agent identification for websites, Kosovo launched a national e-ID and e-signature app, and CrowdStrike and Salesforce acquired AI security and customer service firms. An EU court adviser outlined rules for AI training on publishers' work. These developments highlight the growing focus on AI trust and regulation.