Hi Trader,
Market volatility hasn’t disappeared — but investor behavior has changed.
Instead of chasing broad rallies, capital is increasingly flowing toward areas showing clear demand, real-world adoption, and long-term relevance. Artificial intelligence continues to stand out on all three fronts.
Across earnings calls and corporate spending plans, AI investment is no longer theoretical. It’s being deployed, measured, and expanded — even as other sectors lose momentum.
That shift is creating selective opportunities for investors paying attention.
We’ve prepared a focused research brief outlining where this trend may be headed:
2 AI Stocks Positioned for the Next Phase of Growth
Inside the report, you’ll discover:
- Why AI continues to attract capital while other sectors stall
- Two AI-focused companies trading under $15
- Key developments that could influence these stocks in the months ahead
Access the free AI stocks report here
When markets narrow their focus, leadership becomes easier to spot.
Best regards,
The Investing Ideas Daily Team
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CrowdStrike Stock Drops on AI Fears—Is This a Buying Opportunity?
Reported by Chris Markoch. Originally Published: 4/2/2026.
Key Points
- CrowdStrike stock has declined as investors worry that AI tools like Claude Code could disrupt traditional cybersecurity platforms, but these concerns may be overstated.
- The company’s Falcon platform remains differentiated with full-stack protection that goes beyond the capabilities of current AI security tools.
- Recent price target cuts reflect tempered expectations, yet analysts still see meaningful upside as cybersecurity demand continues to grow.
- Special Report: Elon’s “Hidden” Company
CrowdStrike Holdings Inc. (NASDAQ: CRWD) has heard the words "Anthropic" and "Claude Code" more than it would like. CRWD stock is down roughly 16% in 2026, most of that decline reflecting a broader malaise among frothy technology stocks.
Just as CRWD was beginning to hit its stride, it was knocked off course by two Anthropic-related events. The first came in late February, when Anthropic launched Claude Code Security — right around CrowdStrike’s Q4 earnings report for its 2026 fiscal year.
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This could be the best investment opportunity of the decade.Then in March, details emerged about Claude Mythos, an unreleased model reportedly more powerful than Claude Code Security, and the source code behind Claude Code was also leaked.
That fueled concern that artificial intelligence (AI) could take over a company’s cybersecurity functions. If that were true, it would force a major reassessment of pricing power and margins for CrowdStrike’s Falcon platform.
Sell the Rumor, Buy the News?
Markets love a panic, and Anthropic handed them one. Claude Code Security was presented as a research preview designed to identify high-severity software vulnerabilities and suggest fixes. Investors interpreted that as an AI-native security product that could substitute for work cybersecurity vendors sell today, triggering a broad selloff.
Then the leak about Mythos — described as a significant leap in capability that posed "unprecedented cybersecurity risks" — amplified the narrative: if Anthropic’s models can both defend and attack more effectively, investors may need to reprice the moats security vendors claim.
But time is revealing a more realistic picture of what Claude Code can and cannot do. Claude Code Security is a research preview strong on static code analysis but blind to runtime threats, cloud sprawl, or adaptive attacker behavior. By contrast, CrowdStrike’s Falcon platform is a full-stack security platform for prevention, detection, and response across endpoints, identities, and networks. The Anthropic headlines underscore the irony: leaks like these highlight why robust, integrated security matters more than ever, especially as AI enables smarter phishing and exploits.
CrowdStrike’s AI-native roots allow it to harness these models rather than fear them. CEO George Kurtz has framed that as a breakout edge — agentic AI threats demand platforms that can automate at scale. Post-earnings volume looked like capitulation, and the 5.7% snapback by April 1 suggests buyers are stepping in.
CRWD Stock May Be Running Out of Sellers
When investors rotate back into cybersecurity, CRWD is likely to be a beneficiary. For now, sentiment is in limbo: the stock appears to be stabilizing, which may keep some new money on the sidelines, while analysts have trimmed price targets.
Many analysts still see roughly 20% upside. But just a month ago, several price targets sat at or above $600; the CrowdStrike analyst forecast on MarketBeat now shows no recent targets in the "6" handle.
The Claude Code fallout isn’t an indictment of CrowdStrike’s business model. If anything, it reminds investors why an AI-native Falcon platform is well-positioned to manage the threat matrix posed by agentic AI.
That dynamic could make CRWD a buy. The heavy selling after the company’s February earnings report may have signaled capitulation, but buyers have been returning, and the stock is modestly higher over the last month.
Claude: Reality Check, Not an Existential Threat
Put simply, CrowdStrike had been on an exceptional run. Corrections are normal, and the recent pullback looks like a reversion to the mean rather than the start of a prolonged decline.
The mean for CrowdStrike remains that of a best-in-class company in a high-demand sector. It may be painful for investors who bought near the highs, but the company’s strong annual recurring revenue (ARR) and a growing, sticky customer base suggest time is on CRWD’s side.
Analysts have trimmed targets from the $600s into the $400s, yet roughly 20% upside persists. ARR is climbing, customers are staying, and cybersecurity spending is rising amid growing risks. This isn’t the end of a streak — it’s a pullback to fair value in a must-have sector. Patient investors are likely to be rewarded.
Starwood Shares Have Struggled, but Catalysts Could Signal a Turn
Reported by Jennifer Ryan Woods. Originally Published: 3/31/2026.
Key Points
- Starwood Property Trust has been under pressure from rising interest rates and company-specific challenges, with the stock down more than 30% over the past five years and lagging its peers over the last year.
- Inconsistent earnings, repeated revenue misses, and uneven dividend coverage have weighed on investor sentiment, even as the company has maintained its high dividend payout.
- Recent developments, including a stronger earnings report, improving commentary around dividend coverage, and a newly authorized share buyback, could help shift sentiment if the company delivers more consistent results.
- Special Report: Elon’s “Hidden” Company
Over the last several years, the higher interest rate environment has been a persistent headwind for commercial real estate, and Starwood Property Trust (NYSE: STWD) has been no exception. The real estate investment trust (REIT)—which originates, acquires, and manages commercial mortgage loans and other real estate-related investments—has seen its stock trend meaningfully lower over the last five years.
The past year has been particularly challenging, driven by disappointing revenue, declines in book value per share (BVPS), and several quarters in which earnings failed to cover its dividend. However, recent developments could signal a potential near-term turnaround.
Pandemic Pressure Followed by Rising Rates Pressured Shares
Starwood’s troubles began during the COVID-19 pandemic, when shares plunged in early 2020—from around $26 to below $10—after liquidity concerns and uncertainty hit mortgage REITs and the broader commercial real estate market. Shares recovered to pre-pandemic levels by mid-2021, but rising interest rates starting in March 2022 again pressured property values and tightened lending margins, which hurt commercial mortgage REITs.
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Over the last year, Starwood has lagged the group. The stock is down roughly 12% over 12 months and, trading near $17.37, has been approaching the 52-week low set in April 2025. It has underperformed the broader REIT industry, which is down less than 12%, and several peers: Ares is up about 4.8%, Blackstone Mortgage Trust is down roughly 3.7%, and Apollo Commercial Real Estate Finance is up more than 10%.
Inconsistent Earnings and Dividend Coverage Weigh on Sentiment
One persistent issue for Starwood has been inconsistent results. While earnings per share (EPS) have beaten estimates in four of the last six quarters, revenue missed in five of those six periods. Weaker net interest income in some quarters has also dampened sentiment.
The REIT’s dividend has added to investor caution. For more than a decade, Starwood has paid a quarterly dividend of 48 cents per share, which currently yields about 11.26%. But over the past four quarters, earnings have not fully covered that payout, producing a payout ratio near 165% (about 113% based on 2025 distributable EPS).
Against the still-challenging higher-rate backdrop, mixed earnings and uneven dividend coverage have made some investors wary. Still, several recent developments—better-than-expected revenue, management commentary about improving dividend coverage, and an authorized share buyback—could help restore confidence.
Stronger Results and a Potential Buyback Could Shift Sentiment
In Starwood’s Q4 2025 earnings report (Feb. 25), the REIT reported EPS of $0.42, topping analyst estimates by $0.01. Revenue of $492.95 million was roughly $23 million above expectations—the first quarter of better-than-expected revenue after multiple misses.
Starwood also highlighted a stronger liquidity position, having executed $4.4 billion in capital raises and ending the year with $1.4 billion in available liquidity. Management said it expects dividend coverage to improve steadily through the year, although EPS still did not cover the $0.48 quarterly dividend and BVPS continued to decline.
After the earnings release, the board authorized the repurchase of up to $400 million of outstanding common stock and convertible notes over the next 12 months using existing cash. A buyback equal to as much as roughly 6% of shares outstanding could meaningfully boost per-share results and support the share price, depending on execution.
Wall Street Is Waiting for Clearer Signs of Improvement
The market reaction to the quarter and the buyback announcement was measured. Shares rose about 2% on higher-than-normal volume, although two analysts lowered their price targets while keeping Outperform ratings.
At present, four analysts rate the stock a Hold and three rate it a Buy. The average 12-month price target implies nearly 16% upside from current levels.
Wall Street may remain cautious until Starwood posts more consistent revenue and earnings, demonstrates improving dividend coverage, and begins to execute the buyback. If those catalysts come together, sentiment could turn more favorable in the near term.
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