As markets wobble and mega-caps correct, Rubrik’s stability reveals a very different kind of opportunity. Unlike prevention-focused security companies, Rubrik sits in the layer enterprises must rely on after an attack—not before. With growing subscription ARR, improving gross margins, and new AI capabilities through its Predibase acquisition, the company is strengthening its role as the backbone of disaster recovery. Breaches are increasing, AI-powered threats are accelerating, and resilience is now mandatory infrastructure. Rubrik is emerging as one of the few cybersecurity names positioned for both necessity and long-term scale.

Let’s embark on this transformative journey together and position your portfolio for success in this evolving market landscape!

Be sure to read through to the end to catch all the valuable insights this newsletter delivers to your inbox today.

Five years ago, Applied Digital Corporation (APLD) shares were barely $0.07 each. Fast forward to November 7, 2025, with a close at $30.98—that's a staggering 44,157% leap, powered by the AI data center boom. The chart tells the story: A slow start in 2022, then explosive climbs through 2023-2025, hitting after-hours at $31.54. With a 52-week high of $40.20, it's clear the momentum hasn't peaked yet. Breaking it down simply, the compound annual growth rate (CAGR) is 238.22%. That's the average yearly rocket fuel—calculated by raising the total growth to the 1/5 power and subtracting 1. In plain speak, it's like multiplying your money by over three times each year, on average.

Now, dollar-cost averaging (DCA) becomes your strategy: Drop $500 every month for 5 years, totaling $30,000. You buy more shares when prices dip and fewer on surges, averaging out the wild ride. Projecting forward at the historical pace, with a monthly growth rate of 10.69% from $30.98, the numbers stack up fast. After 60 months, your portfolio could soar to $2,286,560. That's a gain of $2,256,560—a 7,522% return on your input. The early investments get the heaviest compounding lift, while later ones ride the ongoing wave.

Of course, this mirrors the past, and AI stocks like APLD can swing hard—no P/E ratio means high risk baked in. But with that 52-week high of $40.20 as a target and market cap at $8.66B, the upside feels real. If DCA's steady rhythm appeals, your $500 could unearth a massive reward by 2030. Game on?

Volatile weeks have a way of sharpening attention. Red flashes across screens, sentiment cools, headlines speculate, and the macro noise feels louder than usual. Yet the underlying reality for long-term investors rarely changes: markets move in cycles, fears come and go, and companies with real competitive strength continue building value behind the curtain.

Recent pullbacks across mega-caps—whether Nvidia sliding double digits, Meta retracing nearly 15% over the month, or Oracle giving back a sizable portion of its past surge—have reminded investors of a familiar pattern. Markets frequently overcorrect, clumping winners and laggards together as if they share the same fate. Short-term sentiment rarely distinguishes nuance.
But for those who invest with intention rather than impulse, these moments often become inflection points.

This newsletter focuses on one company positioned at the crossroads of data, security, and AI—a space where demand isn’t tied to quarterly emotions but to the rapidly accelerating reality of digital vulnerability. In a landscape where prevention tools keep evolving yet breaches keep escalating, a different category of cybersecurity is emerging as essential: cyber resilience.

And that brings us to Rubrik.

Cybersecurity as a sector has been through its share of whiplash recently. Not because the long-term thesis has weakened—far from it—but because earnings from certain players have created a domino effect. Commvault, for example, reported softer profitability, and the market treated other companies in adjacent areas as guilty by association.
Rubrik, despite its own strong trajectory, was caught in that crosscurrent, dropping roughly 16% over the month.

For seasoned investors, this isn’t unfamiliar. Markets often group companies by broad labels instead of by business model specifics. The same pattern surfaced elsewhere: Molina Healthcare stumbles and Oscar Health sells off, even though their business dynamics diverge. Fiserv and Shift4 moved together despite having far less direct overlap than Shift4 and Toast. It’s symptomatic of rapid-fire trading, not thoughtful valuation.

Yet volatility becomes an advantage when the underlying fundamentals remain intact. Rubrik is one of those cases.

With a market cap of about $14 billion, the company is still considered mid-cap relative to cybersecurity giants, which leaves a long runway ahead. It isn’t profitable on a GAAP basis yet, but it does generate positive free cash flow, posting roughly 17.9% FCF margin over the last twelve months. That distinction matters—free cash flow allows reinvestment without relying on dilution or excessive debt.

Revenue growth has been robust:

Gross margins have meaningfully strengthened as well, rebounding from early-2024 softness and trending back into the mid-70% range, inching toward 80%—a hallmark of software-driven businesses with defensible economics.

These are not the metrics of a company losing momentum. They are the metrics of a company maturing into a category with expanding relevance.

Most cybersecurity names that dominate headlines—CrowdStrike, Zscaler, Palo Alto, Okta—excel in prevention. Their tools are designed to stop breaches from occurring in the first place. These companies perform exceptionally well at what they do, and they remain critical components of enterprise defenses.

But there is a fundamental truth that every executive, investor, and IT leader has been forced to accept:

Prevention alone is no longer enough.

Breaches happen. Not sporadically—consistently. And increasingly, they happen not because hackers “break in” but because they log in through compromised identities.

IBM estimates the average cost of a data breach at $4.45 million, a figure that has steadily risen. And the number of global breaches nearly doubled in early 2024 compared to the prior year. That’s not a statistical fluke; it’s a structural trend.

This is where Rubrik’s role becomes clear.

Rubrik isn’t built as another prevention tool. It operates in the resilience layer, the safeguard that activates when the first line of defense fails. Its job is not to predict the attack but to protect the data that attackers seek—and to restore a business’s operations when a breach occurs.

Rubrik's Security Cloud integrates across on-prem infrastructure, cloud providers, SaaS platforms, and identity systems. It creates immutable backups, enabling systems to be recovered even if attackers infiltrate networks. It layers anomaly detection using machine learning so unusual patterns trigger immediate alerts. And now—through AI integration—it accelerates this process with enhanced accuracy.

Companies do not adopt resilience because they want to; they adopt it because ignoring it has become too costly.

The recent acquisition of Predibase is more than a product enhancement; it positions Rubrik directly at the intersection of enterprise AI adoption and secure data governance.

Predibase brings three major advantages:

Why is this so important?

Gartner reports that over half of enterprise AI projects never reach production, often due to issues related to:

By combining its secure data lake with Predibase’s modeling layer, $RBRK ( ▲ 4.55% ) removes these barriers. It simplifies the entire path from prototype to production, especially for enterprises that cannot risk exposing sensitive data during AI development.

For investors, this positions Rubrik as a foundational layer of enterprise AI, not merely a security service. It brings natural cross-sell opportunities, deeper customer lock-in, and a strategic moat built around secure, governed data.

Rubrik’s Security Cloud already connects with major prevention players—CrowdStrike, Okta, Palo Alto, Zscaler—reflecting its role as an ecosystem partner rather than a competitor. This interconnectedness creates durability; when prevention fails, Rubrik becomes the critical fallback.

Cyber attacks are inevitable. AI-accelerated attacks are even more so. And companies are beginning to recognize that resilience is not optional—it’s operational survival.

Rubrik remains early in its expansion relative to the size of the market it serves. With about $1 billion in subscription ARR, leadership envisions a path toward $10 billion—a 10x horizon shaped by structural demand rather than consumer trends.

Earnings guidance reflects a business still investing heavily:

This is the profile of a company scaling responsibly: growing fast, improving margins, reinvesting into capability, and expanding its strategic footprint.

For overwhelmed investors sifting through noisy markets, Rubrik represents something increasingly rare—a company whose value stems from inevitability, not speculation.
Cloud dependency is not reversing.
Identity-based breaches are not slowing.
AI-driven vulnerabilities are not plateauing.

And enterprises cannot afford multi-million-dollar breaches that halt operations, compromise customer trust, and trigger regulatory exposure.

This is why cyber resilience isn’t simply another category of cybersecurity. It is becoming the new baseline requirement for modern digital infrastructure.

Rubrik stands at the center of that shift.

As earnings season unfolds and markets sort themselves out, the companies that offer essential, non-discretionary solutions often emerge stronger after periods of volatility. Rubrik’s fundamentals, market positioning, and strategic direction align with that pattern.

And for investors who recognize the compounding power of necessity-driven demand, this space—and this company—deserves close attention.

Ready to Revolutionize Your Wealth?

Here's what's waiting for you:

With the world becoming increasingly digital, this question will be on the minds of millions of people looking for new income streams in 2025.

The answer is—Absolutely!

Thank you for taking the time to read today’s email! Your support is what allows me to send out this newsletter for free every day. 

 What do you think of the new format? Please provide your feedback in the poll below, and if you find the newsletter valuable, feel free to share it with other investors!

Disclaimer: This newsletter is for informational purposes only and should not be considered financial advice. Please consult with a financial advisor before making any investment decisions.