I want to talk about Anthropic and OpenAI's security models, which couldn't even be made available for public use. You read that right; Anthropic and OpenAI can't make this model available for public use. The reason is this: these security tools can also be used for attacks. Initially, they were made available for testing to certain companies; Amazon, Google, Nvidia, and Microsoft being the biggest. They couldn't get it to work. Yes, the model is powerful; but it also performs the same function in reverse, meaning it both fixes security vulnerabilities and can carry out cyberattacks when desired. At this point, CrowdStrike and Palo Alto Networks were brought in to collaborate on taking precautions against attacks using this model.

Rubrik is a company positioned to address the biggest risk of Agentic AI: data loss or reversing or recovering erroneous operations resulting from agent errors. Cloudflare, on the other hand, is not a loser, but the clearest winner. The more agents there are, the more internet traffic there is; Cloudflare manages more than 20% of the world's internet traffic. We need to know and understand this.

None of us can say "Palantir is a bad company"; no, absolutely not. But can we say "Palantir is an expensive company"? Yes, absolutely. That's the fundamental difference. CrowdStrike, Cloudflare, Snowflake, $PLTR | Palantir and $AXON aren't being sold because they're bad companies or because AI will destroy them. They're being sold off hard because they have above-average valuation multiples. It's important to understand this difference well.

Now, let's talk about what we should do if the decline continues, which it seems likely to; or what I do in such situations. I go and buy one put option for every 100 shares I hold, meaning I have the right to sell at a predetermined price. If my losses on the spot market increase or don't go as expected, I can sell my shares at the price of the put options I bought earlier, thus protecting myself in return for the premium I paid. If you do this, you can minimize your losses on the spot market with options. That's the option.

You could also say: "Let's sell the shares now, and if the market understands that these are the backbone and important companies of Agentic AI, then we'll buy them back." That's an option. But I can't do that for CrowdStrike and Cloudflare; I'm always holding them at well below their current value, with 70% at zero cost. Rather than selling and paying 40% tax, I prefer to hold onto them and wait until they reach levels that will recoup that 40%. I will make decisions about Snowflake, ServiceNow, and Zscaler based on their balance sheets and management guidance. I'm not considering selling Axon and Rubrik; I'm in a wait-and-see mode until they reach certain levels, and I'll buy accordingly. If I don't reach a conclusion by 2026, I will deduct these from my taxes. In investing, there's both winning and losing.

For years, with this strategy and plan, I have achieved a compound spot return of 62%. These decisions vary from person to person. As I said before, these are stories for 2027-2028. And I still think the same thing: AI will eliminate 90% of SaaS companies, but the remaining ones will offer enormous returns. Of course, I could be wrong; after all, I'm only human like you.

The information, comments and recommendations contained herein are not within the scope of investment consultancy. Investment consultancy services are provided within the framework of the investment consultancy agreement to be signed between brokerage firms, portfolio management companies, banks that do not accept deposits and customers. The comments in this article are only my personal comments and these comments may not be appropriate for your financial situation and risk return. For this reason, investments should not be made based on the information and comments in my articles.