No
doubt you know how a secure password looks like – capital and lowercase
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to think of a stronger password.
Disclaimer: of course, this is a joke and please, please, please do not leave a comment with your personal info.
But cybersecurity is a conspicuous topic nowadays, and cybersecurity companies are on horseback. One of them is CrowdStrike Holdings, which has already experienced a 40% growth since the beginning of the year. And many analysts believe that this growth is far from over – let’s explore the reasons behind their optimistic outlook.
CrowdStrike is a relatively young company that was founded in 2011 and became public in 2019. The chart below shows what happened after that – more than 120% percent growth in just three and a half years. However, at present, the company's numbers are far from their all-time highs.
Okay, historical data is important, but we should look closer at the current situation. The following chart compares CrowdStrike's stocks with the S&P 500 index in 2023, indicating outstanding results for CRWD this year. Among other things, it’s important to remember that a variety of events might influence markets as well as indices or stocks. It means you should forecast what happens next using special trading tools. One of them is the economic calendar, helping track all the major economic events.
The secret of CrowdStrike’s success lies in its exclusive focus on cloud-based technologies. While some can see a limit for growth, this strategy actually enables cost-effectiveness and facilitates a subscription-based model for CrowdStrike services. Consequently, it’s easier to scale the business and engage new customers.
If you are reading this text sitting at home or in a cafe (instead of the office), you are among the individuals contributing to CrowdStrike's additional profit. The higher the number of remote workers, the higher the number of new clients for cybersecurity companies there are. And this trend extends beyond just remote work. So there is definitely room for continued growth. Also, CrowdStrike widely leverages trending stuff such as AI and machine learning – it adds the points to the company in the eyes of investors.
So, we have a fast-growing industry and one of the leaders in this industry. Can you name a more iconic duo? However, it's important to acknowledge that no company is without its drawbacks. For CrowdStrike, one such concern is the deceleration of growth in total revenues. The company's quarter-to-quarter performance might be a factor that discourages some investors.
Despite this, CrowdStrike has a tempting consensus forecast, projecting a 16% increase in the next 12 months. Moreover, most analysts rate the company as a “‘Strong buy”. The abovementioned factors may speak in favor of buying the company’s stock, but it's essential to remember that market conditions can change daily. Therefore, conducting thorough research is crucial before making any trading decisions.
