CrowdStrike CEO Declares Cybersecurity Stocks Safe From Trump Tariffs, Retail Investors Bite

CrowdStrike Holdings, Inc.'s (CRWD) shares defied the tech sector sell-off on Tuesday and ended modestly higher for the day. After the bell, Crowdstrike CEO George Kurtz reassured investors by emphasizing the company's immunity to President Donald Trump's sweeping tariffs.

Speaking on CNBC's ‘Mad Money’ show hosted by Jim Cramer, Kurtz said CrowdStrike could shine in an environment where cyberattacks are increasing, and geopolitical conditions necessitate the need to save costs.

The executive also explained about the company's tariff immunity. "The beauty about our business is we don't have any hardware; we're not subject to the tariffs," he said.

Kurtz said CrowdStrike and the cybersecurity industry are both great in the current geopolitical environment.  

While discussing Alphabet, Inc.'s (GOOG) (GOOGL) recent acquisition of cybersecurity startup Wiz, Kurtz said the deal validates the cybersecurity market, given it was the largest acquisition of a venture-backed company in recent times.

He noted that CrowdStrike is one of the largest cloud security companies by revenue, with $600 million in annualized recurring cloud revenue, and that the company remains undervalued when compared to its prospects.

CrowdStrike is coming off a turbulent year that included fallout from a major Microsoft outage linked to one of its updates, which temporarily disrupted key services and weighed on investor sentiment.

In early March, the Austin, Texas-based company reported a fourth-quarter beat and issued a mixed forward guidance.

A bullish stock watcher on the Stocktwits platform named CrowdStrike among "safe-haven" stocks.

Another user said CrowdStrike is a stock to buy, given that top tech firms will not hold back on their cybersecurity spending. They called it tariff- and recession-proof.

CrowdStrike stock ended Tuesday's session up 0.21% at $325.04 even as the Nasdaq Composite plunged 2.15%; The stock is down merely 5% this year.

Read Next: Broadcom Bucks Broader Market Sell-Off As Chipmaker Announces $10B Stock Buyback: Retail Sentiment Lags Amid Tariff Mayhem

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