Josh Brown and Cathie Wood snapped up CrowdStrike shares at a discount

Published Thu, Dec 1 20222:55 PM EST

A recent selloff in shares of cybersecurity company CrowdStrike has been a buying opportunity for investors Josh Brown and Cathie Wood. The stock suffered a massive blow earlier this week after the cybersecurity company said during its quarterly earnings report that new earnings growth had slowed . That sent the stock down nearly 15%, even though CrowdStrike beat earnings expectations on both the top and bottom lines in its latest quarter. That slump provided an opportunity for Josh Brown of Ritholtz Wealth Management, who bought more of the stock to bolster his position. Still, he said he isn't rushing into the space now just because prices are down – he sees it as a position he will hold for years as he thinks it will eventually pick up and wants to be in it when it does. "I think the key to being in that space in the coming year is don't buy your seventh-best idea because it's going to be a tough space," Brown said on CNBC's "Halftime Report" on Thursday, adding that he sees lower enterprise spend is going to plague the Nasdaq and growth stocks over the next few quarters. The technology sector is showing more signs of a recession than others, given the mass layoffs in recent months, he noted. "CrowdStrike for me is more of a long-term thing," Brown said. "I don't expect to get any performance from it anytime soon." Cathie Wood of Ark Invest also purchased the technology name while it was falling. Wood's ARK Next Generation ETF bought more than 39,000 shares of CrowdStrike on Wednesday, a position worth about $4.6 million. Wood has continued to bet big on technology even after the sector's rough year. In a recent Pro Talk with CNBC, she noted that she sees disruptive technology growing 30-fold by 2030. While Brown noted that he isn't picking up CrowdStrike only because it dipped after earnings, such an event can be an opportunity to add to positions of stocks. Stephanie Link, chief investment strategist and portfolio manager at Hightower, did that today with shares of Dollar General, which slipped more than 8% on an earnings miss and lowered annual forecast.