Led by CrowdStrike Holdings, cybersecurity stocks are showing resilience amid a downturn in the technology sector. CrowdStrike stock has gained 14% in 2025, rebounding since April 4 along with other cybersecurity firms.
As of April 16, the Computer Software-Security group ranked No. 24 out of 197 industry groups that IBD tracks. The group has climbed over 12% since April 4. The iShares Expanded Tech-Software ETF — composed of many of the major enterprise software players — has gained 9% since April 4. But the IGV index is still down 11% in 2025.
"We think cyber spending will remain resilient, though we note it is not immune from economic cycles," said BMO Capital Markets analyst Keith Bachman in a report on Wednesday. "We think cyber spend could be the most resilient part of information technology budgets, though physical firewalls could experience some 'sweating of assets' if global GDP comes under pressure."
The Trump tariff policies could impact the supply chains of network firewall vendors that rely more on hardware products, including Palo Alto Networks, Fortinet and Check Point Software Technologies as well as others compete in the firewall market.
Among cybersecurity stocks, Fortinet stock has advanced 5% this year while Zscaler has climbed 13%. Cloudflare is up 1%.
In addition, Zscaler is the biggest provider of cloud-based web security gateways that inspect customers' data traffic for malware. Started in 2009, Cloudflare speeds up and provides security for web applications routed through its intelligent global network.
CrowdStrike Stock: Technical Ratings
CrowdStrike competes with Palo Alto Networks, SentinelOne, Microsoft and others in the "endpoint" market. Endpoint security tools detect malware on laptops, mobile phones and other devices that access corporate networks.
Also, CrowdStrike is building a threat-detection cybersecurity platform called XDR, which stands for extended detection and response. It monitors endpoints as well as web/email gateways, web application firewalls and cloud business workloads.
Meanwhile, Google-parent Alphabet recently agreed to buy fast growing cybersecurity firm Wiz in an all-cash $32 billion deal.
Further, Wiz, CrowdStrike and Palo Alto Networks are players in the cloud security market, which incudes Cloud Native Application Protection Platform (CNAPP) products and services.
On the stock market today, CrowdStrike stock edged lower to about 390 in early trading as the Nasdaq composite again pulled back on Nvidia news.
On Tuesday, CrowdStrike stock gained 3.7% to 392.80, above the 50-day line and just clearing the 392.69 buy point.
Meanwhile, CRWD stock holds an IBD Composite Rating of 98 out of a best possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
Further, CrowdStrike is among AI stocks to watch.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
