The rise of artificial intelligence has sparked anxieties across numerous sectors and cybersecurity is no exception. Yet, despite recent market jitters fueled by Anthropic’s launch of its Claude Code Security AI tool, some analysts remain optimistic about the prospects for established players like CrowdStrike. In fact, Josh Brown, CEO of Ritholtz Wealth Management, believes the recent dip in CrowdStrike’s stock price presents a compelling buying opportunity, calling it a “screamer” under $400.
CrowdStrike shares experienced a nearly 16% decline in February as investors grappled with the potential for AI-driven tools to disrupt the existing cybersecurity landscape. The concern centers around whether new AI-first offerings, like Anthropic’s Claude, could displace traditional cybersecurity software and services. However, Brown dismissed these fears as overblown, stating on CNBC’s “Halftime Report” on Tuesday afternoon, “[I] think this idea that Anthropic launched a bug detector, therefore Fortune 500 companies and businesses and governments around the world are going to rip out their cybersecurity is the dumbest thing I’ve ever heard. And I’ve been on Wall Street 28 years.”
AI’s Role in Cybersecurity: Evolution, Not Revolution?
The debate highlights a crucial question: will AI fundamentally alter the cybersecurity industry, or will it simply become another layer of defense within existing frameworks? Brown’s perspective suggests the latter. He expressed confidence in CrowdStrike CEO George Kurtz and the company’s AI-powered Falcon platform, arguing that an AI capability focused on code scanning doesn’t negate the comprehensive security solutions offered by Falcon. This sentiment echoes Kurtz’s own defense of CrowdStrike’s “moat” in a LinkedIn post over the weekend, as reported by CNBC.
The market reaction to Anthropic’s announcement was significant. Cybersecurity stocks broadly declined, with CrowdStrike and Zscaler each dropping around 10% on Monday, February 23, 2026. Netskope and Tenable saw even steeper declines, plummeting approximately 12%, while other companies like SailPoint, Okta, SentinelOne, and Fortinet also experienced losses. Even Cloudflare, which had recently benefited from interest surrounding the Moltbot tool, saw a drop of over 9%. The iShares Cybersecurity & Tech ETF and the Global X Cybersecurity ETF both reached lows not seen since November 2023.
Earnings Report as a Key Catalyst
Looking ahead, the March 3 earnings update for CrowdStrike is being closely watched by investors. According to a report from Simply Wall St, the key catalyst will be any commentary on AI-driven demand and competition. The biggest risk, the report notes, is that high expectations are met with signs of slower Annual Recurring Revenue (ARR) or module adoption. However, the recent integration between CrowdStrike Falcon Shield and the Qualtrics XM Platform could provide a positive signal, extending Falcon’s reach into customer and employee experience programs that handle sensitive data.
Malcolm Ethridge, managing partner at Capital Area Planning Group, also expressed a bullish outlook on CrowdStrike during the same CNBC segment. Ethridge indicated a willingness to purchase the stock if it dips following the earnings report, anticipating that CrowdStrike might follow the pattern of other companies that have experienced sell-offs after releasing their earnings. He believes the increasing reliance on agentic artificial intelligence could actually benefit the cybersecurity sector, as more oversight will be required as responsibility is offloaded to AI systems.
The Potential Upside of Agentic AI
Ethridge articulated a compelling argument: “That says to me that the category leader in cybersecurity right now, at least cloud-based cybersecurity, is going to be one of the biggest beneficiaries of the increased spending that has to approach to this category. That’s a place I want to be long for a while.” This perspective suggests that the shift towards AI isn’t necessarily a threat to established cybersecurity firms, but rather an opportunity for them to expand their offerings and solidify their positions as essential providers of oversight and security in an increasingly complex digital landscape.
The concerns surrounding Anthropic’s Claude Code Security tool stem from its ability to scan software code for vulnerabilities and suggest solutions. This capability raises questions about whether AI could automate tasks currently performed by cybersecurity professionals, potentially reducing the demand for traditional security software. However, as Brown argues, a bug detector is not a replacement for a comprehensive security platform like CrowdStrike’s Falcon, which offers a broader range of services, including endpoint protection, threat intelligence, and incident response.
The current market volatility presents a potential entry point for investors who believe in the long-term prospects of CrowdStrike and the broader cybersecurity sector. As the industry continues to evolve in response to the growing threat landscape and the emergence of new technologies like AI, companies that can adapt and innovate will be best positioned to succeed. Shares of CrowdStrike were trading around $393 on Tuesday afternoon, up nearly 2% ahead of the quarterly earnings release.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investing in the stock market involves risks, and investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
The next key event for CrowdStrike is its earnings report after the bell on March 3, 2026. Investors will be closely scrutinizing the company’s performance and guidance for the future, particularly in light of the evolving AI landscape. What are your thoughts on the future of cybersecurity and the role of AI? Share your comments below and let us know what you think.
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