Trade Tracker: Bill Baruch buys CrowdStrike

We begin today with a halftime trade alert. It is from Bill Baruch and he does join us because he has bought crowd strike. Why’d you do that. It’s good to have you on tell us about this trade and why you decided now is the right time. Yeah thanks for bringing me on and and so I mean we all know that crowd strike had a big reaction after the after the earnings report earlier this year and then it sold off pretty well. I’m we’ve stayed away from traditional cyber security over the last year and and really missed a name like this in the bull market in 2023. Not to say we had quite a bit of exposure and names like NVIDIA and others. But one of the reasons why I stayed away from traditional cyber security was a fear that the hyperscalers were going to roll out a really competitive edge in the security space and and users that were already on their platforms would begin adopting to such. And and anecdotally I had a conversation with Dan Ives earlier this year and in February at dinner one evening and asked him you know how does he feel about something like that and and I felt there’s no one really better to ask and only in his way. His response to me was I’ve been getting that question ever since Tom Brady was playing football in Michigan and I think that’s kind of spoke a lot to me. And really you know at that moment I realized I need to get some exposure into a name like Crowd Strike and look to you’re doing it on a pullback. So we have this broad market pullback and it gives getting into crowd Strike here gives it a month before their earnings and the market broadly has sold off. So I think it’s really well positioned. And then you hear about Warren Buffett over the weekend talking about AI and and how there’s going to be there’s AI and increases the risk of scamming. And I mean I I see that just in our normal everyday life all the time the risk there. So I I think having explosion in this space is extremely important. And then we talk about crowd strike more specifically, they have beat earnings, EPS in revenue eight of the last eight quarters. So I I expect this name to continue on that track and I’m excited to be be an owner of Cross right now. Interesting you’re joining the club so to speak. Josh Brown, have you been in this name a long time? What do you make of the move right here? Well, I obviously agree with it. I’ve been long this name since the summer of 2020. It’s up 400%. It is the best performer of the larger cap security names. I believe that quality in this space matters. I don’t think there are going to be 10 relevant companies for very much longer. Because if you’re a Fortune 500 company or you are large governmental body or a municipal agency, if your reputation is on the line, ultimately you’re going to end up choosing the highest quality providers so that you don’t go, so you don’t lose your job, you don’t, you don’t destroy your reputation as a professional. So we’ve seen that in this space over the over the decades. This new generation of AI enabled, machine learning enabled neural Nets requires that you have a large concentration of users and crowd strike has figured out that equation. They’ve done so for a long time and I think that’s why ultimately you’re going to see a lot of concentration of customers at the larger companies. I think this is best and breed, I think George Kurtz is a genius and I’m a long term shareholder here. So congratulations to new investors in the name. I hope it continues. Yeah, Joe, you’re in it too, along with Palo Alto. But this is the one that you’ve been playing for a while as well. Yes, cybersecurity. And it’s a valuable lesson for the viewers and holding on and letting your winners ride. That’s exactly what’s unfolded here with crowd strike. And crowd Strike has had a very strong recovery. Let’s remember where we were on the cybersecurity trade in February, Palo Alto. That’s significant decline for Palo Alto. So Palo Alto has not come back as strongly as crowd Strike has. There’s been relative outperformance from Crowd Strike. It was recently added to the Joe T ETF. I’ve owned it personally for quite some time, and I’m basically all in on the cybersecurity trade.