2 Cybersecurity Stocks With Serious Long-Term Wealth-Building Potential
CrowdStrike and Palo Alto are positioned for long-term growth.
Cybersecurity spending is on the rise, driven by the increasing adoption of artificial intelligence (AI) technologies. According to Gartner, global information security spending is expected to reach $244 billion by 2026, with spending on AI cybersecurity projected to nearly double from $25.9 billion in 2025 to $51.3 billion in the current year. Two companies are well positioned to capitalize on this growing market: CrowdStrike (NASDAQ: CRWD) and Palo Alto Networks (NASDAQ: PANW).
CrowdStrike has established itself as a leader in protecting computers and other devices from cyberattacks. However, its Falcon platform has evolved far beyond its initial purpose, now encompassing 34 cloud-based security modules. These modules cover a wide range of security areas, including endpoint and cloud security, identity protection, threat intelligence, data protection, and cybersecurity for generative AI. This diverse portfolio provides CrowdStrike with a distinct advantage in the market.
The strategic advantage becomes evident when considering the customer retention rates among CrowdStrike's subscription clients. Currently, 51% of these customers utilize at least six Falcon modules, while 26% rely on eight or more. By leveraging the Falcon platform, CrowdStrike can sell additional products to existing customers without the need to win entirely new accounts. This approach not only strengthens customer relationships but also contributes to long-term wealth-building potential for investors.
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