TLDR: Netskope stands to gain from the same rebound that the rest of the software sector is going through after being decimated by AI fears. Tell me if I'm an idiot.
Many software companies were decimated in the past 9 months and are now recovering: Crowdstrike (CRWD). Zscaler (ZS). ServiceNow (NOW). Cloudflare (NET). Palo Alto Networks (PANW). Others.
Why don’t I see discussion on Netskope? Either with threads, or in the daily thread?
Most of these names have recovered a lot; I see a lot of discussion about them. I think Netskope also stands to benefit from the same rotation back into these enterprise software companies that we’re seeing with NOW, CRWD, and the others.
Cybersecurity + Agents: As agentic AI is adopted more widely at enterprise scale and integrated into business processes, the need for good off the shelf cybersecurity solutions will only grow. Netskope’s existing offerings will still be used; enterprises will ask for more features = more revenues; and they may even be able to cut costs from their own use of AI to create these products combined with their existing software and expertise. This is because agentic AI will sometimes have access to simple things: command line. Web browser. Certain API / MCP tools. All of these are potential vectors for exfiltration of company data, which means that NTSK and other similar protections are needed.
Analyst Rating: is highly bullish with BUY almost across the board for all analysts and average price target of $17.
I’m not saying you can’t do the other cybersecurity players. But Netskope deserves a spot. We’ll see how earnings go tomorrow.
Positions: 4c 10/26 $12.5
Not financial advice. I’m regarded as always. Tell me why I'm an idiot.