Cybersecurity stocks regain momentum as Amazon spending, CrowdStrike lead sector focus

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Cybersecurity stocks regain momentum

Highlights

Amazon's AWS revenues surge 36.7% year-over-year in Q2 2026, reaching 21% of net sales and 60% of operating income, but capex soars to $53.1 billion for the quarter and $220 billion guidance for 2026.
CrowdStrike leads cybersecurity sector with a 104% YTD stock gain, 26% Q2 revenue growth to $1.47 billion, and a $5.84 billion total ARR, driven by robust new ARR and AI integrations.
Palo Alto Networks, Fortinet, and Cloudflare remain key bullish sector names with divergent technicals, as Zscaler and SentinelOne show early recovery but remain outside the preferred list.

Cybersecurity picks and Amazon outlook

As reported by CNBC, market commentator Josh Brown and Sean Russo highlight Amazon and several cybersecurity companies as leading names on their Best Stocks in the Market list, arguing that AI is increasing rather than weakening demand for digital security. They say the sector is separating itself from the broader software group as revenue growth, recurring income and investor positioning improve across several large-cap names.

Amazon remains a more mixed case in that review. AWS grows 36.7% year over year in the second quarter of 2026, its fastest pace in 18 quarters, while the company reports $200.6 billion in net sales and says AWS accounts for 21% of revenue and 60% of operating income. At the same time, Amazon's capital expenditure bill keeps climbing, with second-quarter capex at $53.1 billion and full-year 2026 spending expected at roughly $220 billion, leaving investors focused on whether those investments produce sufficient returns.

Looking ahead, Amazon guides third-quarter net sales to $197 billion to $202 billion and operating income to $22.5 billion to $26.5 billion. Brown describes the stock chart as range-bound, with resistance around the 50-day moving average and support near the 200-day, suggesting limited near-term momentum unless the shares reclaim the $270s.

Large-cap cyber names outpace weaker peers

CrowdStrike stands out as the strongest name in the group, with the stock up 104% this year and supported by second-quarter revenue growth of 26% to $1.47 billion, record net new annual recurring revenue of $333 million and total ARR of $5.84 billion. Management also raises full-year net new ARR guidance and expands its AI strategy through SafeMind, a cybersecurity model offering built with Nvidia, while Brown says the chart still shows room for further gains.

Palo Alto Networks, Fortinet and Cloudflare also remain central to the bullish sector view, though with different technical setups. Brown says Palo Alto's chart has weakened after approaching $400, with support seen around $320 to $330, while Fortinet continues one of the cleanest uptrends in the sector after its May earnings jump, despite a history of sharp post-earnings setbacks. Cloudflare, which is not a pure cybersecurity company, is included because of its security and AI network exposure and has just reached a new high, with buyers still in control.

Outside the formal list, Zscaler and SentinelOne are being watched but do not yet qualify as preferred picks. Russo and Brown say Zscaler is showing early technical improvement after a prolonged decline and trades at a discount to larger rivals, while SentinelOne remains below the market capitalization threshold used for the list despite a chart that is recovering.

In our earlier coverage of the Nasdaq 100’s technical outlook, we noted the index extending its uptrend while holding above its key moving averages, reinforcing bullish momentum across time frames. At the same time, several indicators were flashing overbought conditions, suggesting the rally could pause or see a modest pullback if support levels fail. Our analysis highlighted $30,080 as near-term support and $30,641 as a breakout level to watch for the next directional move.

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