Opinions Stockchase Insights
CrowdStrike HoldingsCRWDBUY ON WEAKNESSJul 19, 2024
Stockchase InsightsStock price when the opinion was issued
As of Sep 11, 2026. Market Open.
You might be interested:
He is bullish on cybersecurity since the whole sector will see a big pickup in demand. Developments in AI will result in problems as related to cybersecurity. Risk management should lead to a pullback in AI stocks. Although Crowdstrike has done a great job and has a great reputation, he has no strong opinion, He suggests owning a cybersecurity ETF.
;fill-opacity:1;'/%3e%3cpath%20d='M31%2018.6001V30H8V18.6001L14.1334%2022.4334L19.4999%2014L24.8669%2022.4334L31%2018.6001Z'%20fill='%23EE5432'%20style='fill:%23EE5432;fill:color(display-p3%200.9340%200.3310%200.1956);fill-opacity:1;'/%3e%3c/svg%3e){kind=small}
Premium contentWall Street hailed this report as a "historic moment" for cybersecurity, driven by the mass adoption of its artificial intelligence tools. The company posted total revenue of $1.47 billion (a 25.8% year-over-year increase), surpassing the $1.44 billion expected by analysts. Adjusted earnings per share came in at $0.31, beating the consensus forecast of $0.29 (figures adjusted following the 4-for-1 stock split in July). Social media mentions are up 600% in the past 24h.
In the security space on the endpoint device management side. Generative AI is producing reams more data, which has to be protected. Around 40x PE, 7.5-8x revenue -- premium multiple. Pretty strong margins and growth profile. In the right space of adapting to AI. Expensive for a reason.
Nick Mersch, CFATrades at 15-20x revenue, so the market expects strong growth for five years without AI disruption or hiccups. Prefers MSFT at a much-lower PE.
Jamie Murray (The theme of today's Top Picks is cybersecurity, which is going to be big deal. All of the AI systems will have to be made more secure. Each of today's picks has already had a good run.)
12-month price target of $192. Scale in and buy some here today, some more in the low $170s, and the final tranche in the low $160s. Very competitive area, but its advantage is its global reach. No dividend.
Kim Bolton
Cloud services are using a lot of cybersecurity names, which reported good earnings. CRWD's balance sheet continues to improve.
Joe TerranovaHe loves the cybersecurity space but the stock has become very expensive. He advises to take a trading position and trim. It went parabolic a couple of weeks ago so they sold 25% at $758
Gordon Reid
Just bought it. Though software is underperforming, cybersecurity is strong. He shouldn't have sold this last February. Is up 48% this year. He's buying the momentum now. Don't be afraid of price when momentum is such a factor.
Joe TerranovaPremium contentIn the last quarter, the company reported 1.12 USD per share, beating the 1.10 USD estimate by 1.73%. Revenue for the same period reached 1.31 B USD, despite the estimate of 1.30 B USD. For the next quarter, analysts expect 1.07 USD in earnings per share and 1.36 B USD in revenue. Social media mentions are up 244% in the past 24h.
CRWD has about 12% of the global market for end point security. Certainly the news is not good, but it is important to realize that this was not a security breach, but rather the company itself adding a software patch to existing customers. Of course, the outcome, i.e. a software shutdown, is largely the same and still a big expense and inconvenience for customers. There will be charges to fix this, and it could be a very manually-intensive fix. Lawsuits are possible. Competitors will use this as a way to try to win contracts from customers using CRWD. But, the stock will drop on the opening, but it will not be a fatal blow. Certainly it will damage reputation, but a security breach would have been worse, in our view. It will get a lot of media attention, but we think ultimately the company recovers over time. Its premium valuation multiple may diminish in the short term. If the problem can be fixed quicky, less damage will be done. It is probably going to create a buying opportunity in the stock, eventually, but as of now there is still too much uncertainty.
Unlock Premium - Try 5i Free