Apr. 18 at 12:32 AM
$PANW,
$CRWD $NET $ZS
and all the other “top tier-best of breed” Cyber companies:
Just a weekend reminder & what shorts have miscalculated:
Cybersecurity isn’t just “stickier SaaS” it’s structurally different in kind.
It’s an adversarial domain. The threat scales with the technology. AI makes attacks more sophisticated, faster, & more targeted, which means demand for defense doesn’t compress, it escalates. You’re not just managing a workflow, you’re fighting an opponent who also has the latest & greatest AI tools.
That’s not a war with a slow dinosaur anymore. That’s an arms race with no finish line.
Finally, the regulatory moat for cybersecurity is real. Compliance mandates, board liability, and insurer requirements create demand floors that productivity software doesn’t have.
I agree that the margin compression thesis works for SOME static software (SaaS) companies. That said, it’s much harder to apply to a category where the problem set actively grows alongside the solution set.
