There weren’t any S&P 500 earnings reactions yesterday…
But we did get fresh monthly and quarterly closing data, and one industry group is demanding our attention.
Cybersecurity.
This has become one of the most powerful secular themes in tech, and it’s only gaining momentum.
As digital threats become increasingly sophisticated, companies and governments are being compelled to invest heavily in protecting their data, systems, and users.
From ransomware payouts to state-sponsored espionage, the battlefield is expanding, and the stakes have never been higher.
In today’s cloud-first world, there’s more surface area to defend than ever before.
This isn’t a cyclical trade.
It’s structural...
It’s global...
And it’s urgent!
The result? Cybersecurity is now one of the fastest-growing categories in enterprise IT.
Budgets are rising, and the revenue is sticky.
The opportunity set for leading cyber firms is expanding rapidly.
This is where real money will be made over the next decade.
Let’s break down the charts and highlight one stock that’s already starting to separate from the pack.
The Cybersecurity ETF $HACK closed June at a fresh all-time high 📈
The Cybersecurity ETF holds the biggest and best names in the industry, such as CrowdStrike $CRWD and Palo Alto Networks $PANW.
For the first time, the price had a monthly close above the 423.6% extension of the nearly 50% drawdown from 2015.
This shifts the path of least resistance higher toward the 685.4% extension level.
It also puts a potential “hunnid-dolla-roll” in play.
That’s the tendency for assets to accelerate once they approach a significant, round number (like $100) for the first time. If buyers continue to press here, we wouldn't be surprised to see momentum carry it through triple digits.
This recent move confirms the broad strength we're seeing across the entire cybersecurity industry.
If HACK is above 85, our bias is higher for the foreseeable future.
Now, let's turn to the stock that’s separating itself from the pack.
Here's CloudFlare at a glance 👇
CloudFlare isn’t just growing, it’s transforming how the modern internet runs.
The company is scaling rapidly, with revenue compounding at over 30% annually, even as macro conditions slowed most of the tech sector.
And it’s not just small businesses driving that growth.
Large customers (defined as those generating over $100,000 in annualized revenue) are also compounding at a nearly 30% clip and now account for 2/3 of total revenue.
That means they're moving upmarket, winning enterprise contracts, and becoming more deeply embedded in critical infrastructure.
What makes it even more impressive?
The business is doing all this with 77% gross margins, which is higher than the industry average.
This isn't just a cybersecurity company.
It’s a next-gen internet platform with explosive growth, elite margins, and a global footprint.
We think this stock is in the early stages of a new secular uptrend.
Here's the setup in NET 👇
CloudFlare just completed a multi-year base with a fresh all-time monthly closing high. This marks the end of a prolonged consolidation and the start of a new markup phase.
The last time this stock was in an uptrend, it ripped 1,300% in just two years.
Now that it’s climbing out of a massive base, we think a similar trend is on the table.
As long as NET holds the breakout above 195, the path of least resistance is higher for the foreseeable future.
Thank you for reading.
- The Beat Report Team
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