US cybersecurity stocks remain in focus following a massive attack on Microsoft’s on-premises SharePoint servers that enabled hackers infiltrate more than 100 organisations globally – including government agencies and universities.
MSFT has since issued emergency patches, but concerns remain about lingering backdoors and compromised credentials.
In the wake of this incidence, famed investor and former hedge fund manager, Jim Cramer, named two cybersecurity firms – CrowdStrike and Palo Alto Networks – as essential investments for those seeking exposure to sector’s defensive backbone.
Let’s take a closer look at what both CRWD and PANW have in store for investors in the back half of 2025.
Here’s why you should own CrowdStrike Holdings Inc (NASDAQ: CRWD)
CrowdStrike has emerged as a leader in cloud-native cybersecurity – offering scalable endpoint protection through its Falcon platform.
The company’s strength lies in its modular, subscription-based architecture, which allows clients to tailor their defenses while benefiting from AI-driven threat detection.
“You call George Kurtz [of CrowdStrike]. You say, help me” Cramer said, emphasizing the firm’s reputation as a go-to solution during crises.
CRWD has a Falcon Flex plan, and a generative artificial intelligence assistant dubbed Charlotte, which further enhance its appeal to enterprise clients.
With over 29,000 customers, including more than half of the Fortune 1000, CrowdStrike stock is well-positioned to capitalize on the rising urgency for robust cybersecurity infrastructure.
Cramer’s bullish view on CRWD shares is in line with Wall Street that rates them at “overweight” with price targets going as high as $575, indicating potential for another 25% upside from current levels.
Note that the cybersecurity stock is already up more than 50% versus its year-to-date low in early March.
Here’s why you should own Palo Alto Networks Inc (NASDAQ: PANW)
Palo Alto Networks offers a broad suite of cybersecurity solutions, spanning network firewalls, cloud security, and AI-powered threat detection.
Its platforms, Strata, Prisma, and Cortex, serve more than 80,000 enterprise customers globally.
Famed investor Jim Cramer recommends owning PANW shares in the wake of Microsoft attack also because Nikesh Arora, the chief executive of Palo Alto Networks, is a trusted figure during security emergencies.
“You don’t know who to call, so call Nikesh Arora,” he told CNBC viewers this week.
Palo Alto Networks has recently completed its acquisition of Protect AI, bolstering its capabilities in securing artificial intelligence applications.
Analysts expect Palo Alto’s revenue to grow at a compound annualised rate of 14% through 2027, driven by its next-generation security service and aggressive M&A strategy.
They have a consensus “overweight” rating on the cybersecurity stock with price targets going as high as $240, indicating potential for another 20% rally from here.
All in all, Palo Alto Networks remains a balanced play for long-term cybersecurity exposure in the second half of 2025.
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