Global stocks just suffered a sharp selloff as fears around an AI slowdown rippled through markets. When confidence in headline tech stories wobbles, attention often shifts to what keeps that digital world secure in the first place. Cybersecurity providers that protect data and networks are central to that discussion. This article highlights three stocks from a global security screener with high growth expectations and solid balance sheets.
The three cybersecurity stocks covered below are just a sample from a broader opportunity set, and the full screen surfaced 8 more companies with equally compelling narratives that are not detailed in this article. If you want to identify potential leaders for your own watchlist, head straight into the Global Cybersecurity screener to filter and analyze the global cybersecurity field using a single focused tool.
Datadog (DDOG)
Datadog runs a broad cloud observability and security platform, with its cloud security, threat management and Cloud SIEM tools giving it a direct role in defending modern infrastructure against attacks.
Datadog, Inc. operates an observability and security platform for cloud applications, with security offerings such as Cloud SIEM and threat management tying it directly to the cybersecurity theme, and has a market value of about US$63 billion.
Datadog's security tools plug into the same telemetry spine that powers its observability products, so any uptick in digital activity or AI workloads can quickly translate into deeper security usage and higher spending per customer.
"Expanding AI workloads, with over 750 AI customers including all 10 of the top AI leaders and growing use cases such as GPU monitoring, Agent Observability, AI Guard and Bits AI, can support higher observability and security spend per customer and feed Datadog revenue growth over time."
One quiet pressure on Datadog's largest customers could start to reshape expectations for how long that elevated spend can last.
That pressure on big spenders is the real hinge for Datadog, and the full narrative for Datadog explains in detail how that could reshape growth, resilience and pricing power.
Zscaler (ZS)
Zscaler is a cloud security specialist that runs a Zero Trust SASE platform to protect users, devices and workloads as they connect to applications and AI services. The business generates about US$3.4b from subscription access to its cloud platform and is valued at roughly US$33.2b.
Zscaler fits this cybersecurity screen because its Zero Trust SASE platform sits directly in the traffic path, inspecting and securing every connection rather than relying on traditional network perimeters. That position is becoming more important as enterprises plug AI tools and cloud apps into day to day operations.
"If AI agents become widespread across enterprises, security spending may need to expand significantly beyond traditional user and network protection."
What happens to Zscaler's earnings power if that extra layer of protection becomes a routine line item in every large IT budget?
That extra layer of protection is exactly where the full narrative for Zscaler maps how AI driven traffic, pricing power and enterprise adoption could accelerate or stall Zscaler's long term earnings story.
CrowdStrike Holdings (CRWD)
CrowdStrike Holdings runs the Falcon cloud platform, which protects endpoints, identities and workloads for enterprises through cybersecurity software and services that generated about US$5.4b in revenue, and the business is valued at roughly US$222.9b in the market.
CrowdStrike matters here because Falcon is built for exactly what this screener targets: protecting data and systems as attacks follow workloads into the cloud and AI. That is the backdrop for how it is trying to deepen its role inside customer security budgets.
"The introduction of Falcon Flex, a subscription model that accelerates module adoption and simplifies procurement, is increasing customer commitment and lengthening customer relationships, which may lead to increased future revenue and improved net margins due to larger, bundled sales."
The real swing factor is how one pressure on future AI focused security demand interacts with those longer contracts to shape margins and growth.
That demand tension is exactly what the full narrative for CrowdStrike Holdings unpacks, separating short term AI security noise from the longer term CrowdStrike Holdings earnings engine.
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This article is general in nature and was produced with the assistance of AI automation, based on data and analysis from Simply Wall St. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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