CrowdStrike is a leading provider of endpoint protection delivered through the cloud. The brunt of CrowdStrike’s business relies on artificial intelligence to safeguard client data and operations both on and off networks.
The Sunnyvale, CA-based company’s IPO was originally priced at $58. CrowdStrike (CRWD) is currently selling for $67 a share. The stock closed at $79.50 merely five days ago. Let’s take a quick look at whether CRWD can hover in the high $60s or possibly spike even more as time progresses.
Digital Defenses are in Demand
As time progresses and our society moves toward the digitization of nearly everything, companies like CrowdStrike will become that much more important. This is precisely why there was so much enthusiasm over CrowdStrike’s IPO. The question is whether the stock will continue its momentum or suffer from profit-taking following its uber-successful stock market debut.
As a whole, the cybersecurity industry is attracting widespread investor attention. From ransomware to spyware, phishing and beyond, governments and companies of all sizes and niches are facing a rise in digital threats. CrowdStrike is in the catbird’s seat to benefit from these digital onslaughts. CrowdStrike’s cloud-delivered digital protection really will prove that much more valuable as time progresses.
Have Investors Missed the CrowdStrike Train?
The fact that plenty of IPOs have increased after initially hitting the market only to fall off a cliff days, weeks or months later should give investors pause. However, it is a good sign that CrowdStrike’s stock has generally moved upwards in after hours trading. If you did not get in on CRWD on the first day of trading, do not feel bad. There is still room for growth. Though the digital protection specialist has steep net losses, it has shown meaningful improvement in revenue. Furthermore, CrowdStrike is winning in an area that matters a great deal for cyber security providers: reputation. Plenty of business owners, managers and everyday people select their digital security protection based on name and reputation.
Tech monolith Alphabet has backed CrowdStrike. In fact, Alphabet’s venture capital group, CapitalG, holds more than 10% of the high-vote B shares for this up-and-coming digital security provider. Add in the fact that cyber security stocks have performed quite well throughout history and it is easy to understand why investors are bullish on CrowdStrike. So, don’t assume you are late to the party simply because this stock has skyrocketed. There is still some money to be made on CrowdStrike, especially if you are willing to hold shares for the long haul.
CrowdStrike Numbers Investors Should Know
CrowdStrike’s market capitalization is $15 billion. The company will likely rake in $250 million in revenue this year. This revenue figure is meaningful as one of the industry’s top players, Zscaler, has projected yearly revenue right around $300 million. However, Zscaler’s market cap is approaching $10 billion. Prospective CrowdStrike investors will find it interesting to learn plenty of Zscaler shareholders sold their shares to purchase those of CrowdStrike. It is clear the investing community expects CrowdStrike to be a major power player in the near future as well as the long-term.
Buy, Sell or Hold?
Buy and hold. In short, CRWD represents the future. Digital security will be at the forefront of national defense as well as corporate defense for the foreseeable future. Even moderately-sized businesses will need CRWD’s digital security solutions to ensure their transactions and data do not end up in the wrong hands. Do not be swayed by CRWD’s $140 million loss this past fiscal year. Its primary expenses are sales and marketing. The marketing challenge will certainly be ameliorated by all the free press this stock has received since going public. Furthermore, the fact that this digital security provider is backed by Alphabet is all investors need to know.
Scoop up some shares of CRWD at the current price, hold them for years and you will likely make out like a bandit. CRWD belongs in every investor’s portfolio. In fact, there is a decent chance CRWD will be bought out at some point down the line. If the company is acquired, its shares will climb even higher. Take the long view, buy CRWD today and your hard-earned money will work for you in the years to come. Do not consider selling this stock unless it doubles in price across the next couple years.
Regards,
Ethan Warrick
Editor
Wealth Authority
