−10.0%
since Oct 13
The idea
I believe companies are tired of juggling dozens of security tools and are consolidating spend onto a handful of AI-driven platforms, especially as AI also makes attacks cheaper and faster to launch. This basket leans into the likely consolidators alongside cloud security, identity, attack-surface management, and newer AI-native defense names, plus two sector ETFs so no single earnings report can sink it. No position dominates and I keep 10% in cash. I would rethink this if customers keep spreading budgets across many niche tools instead of consolidating.
What it owns
- These companies win when businesses replace many point tools with one platform, shrinking vendor counts and deepening customer relationships. · Palo Alto NetworksIt asks customers to replace many tools with one platform, trading near-term discounts for larger long-term contracts that lock in recurring revenue., CrowdStrike HoldingsIt started protecting laptops and servers and now sells add-on modules on a single agent, consolidating functionality while growing customer spending., MicrosoftIt bundles security into licenses most businesses already pay for, making it the cheapest default when consolidation budgets tighten., FortinetIt builds its own chips and sells firewalls plus networking and security in one package, appealing to buyers cutting vendor counts.32%
- These companies run shared infrastructure where security checks happen in the cloud or at network edges, the natural place for spending to consolidate. · ZscalerIt routes company traffic through its cloud platform so security checks happen there instead of on office hardware, centralizing spending., CloudflareIt runs one global network handling security, speed and AI traffic, so customers can drop separate vendors by using more of it., Check Point SoftwareIt is a long-established, very profitable firewall company with a large installed base it can sell more platform products into., Akamai TechnologiesIt is shifting from delivering web content to selling security and cloud computing, with security now the biggest part of revenue.20%
- These companies use AI to detect and stop attacks faster, or help businesses recover from ransomware and data theft as threats accelerate. · RubrikIt protects company data and helps businesses recover from ransomware, risks that grow as AI makes attacks faster and more frequent., DatadogIt already watches how companies' apps and cloud systems run, and is adding security tools on top of the same visibility data., SentinelOneIt sells AI-driven protection for computers and cloud systems, competing with larger rivals while building recurring revenue.14%
- These companies find and rank the weak spots attackers can exploit, work that grows harder as AI speeds up threat discovery. · QualysIt scans companies for weak spots attackers can use, doing profitable work that stays relevant as attack methods accelerate., Tenable HoldingsIt maps everything a company has connected to the internet and ranks which risks to fix first, work that grows harder as AI speeds up discovery., Varonis SystemsIt tracks who can reach sensitive files, which matters more as AI assistants read across company data and search for useful information.10%
- Broad cybersecurity ETFs steady the take when individual stocks have weak quarters, spreading risk across the whole sector. · First Trust NASDAQ Cybersecurity ETFIt holds a wide spread of cybersecurity stocks, steadying the take when one company has a bad quarter or faces temporary headwinds., Amplify Cybersecurity ETFIt holds a different mix of cybersecurity stocks than other sector ETFs, giving broad coverage beyond the names picked here.9%
- Controlling who can log in and access what matters more as AI-driven attacks target stolen credentials as the fastest path inside. · OktaIt manages identity and access controls that protect against credential-based attacks, a primary vector for AI-powered intrusions.5%
- Cash10%