×
S&P 500   3,892.59 (+1.24%)
DOW   31,323.49 (+0.92%)
QQQ   293.73 (+1.71%)
AAPL   145.60 (+1.88%)
MSFT   267.91 (+0.64%)
META   171.75 (+1.17%)
GOOGL   2,350.32 (+2.57%)
AMZN   116.08 (+1.53%)
TSLA   727.10 (+4.59%)
NVDA   157.54 (+4.12%)
NIO   22.34 (+7.25%)
BABA   123.60 (+3.76%)
AMD   79.12 (+5.00%)
MU   58.48 (+1.93%)
CGC   2.68 (+1.13%)
T   21.15 (+0.28%)
GE   62.33 (+1.23%)
F   11.56 (+4.52%)
DIS   97.18 (+1.14%)
AMC   13.73 (+9.23%)
PFE   53.11 (+0.68%)
PYPL   74.87 (+2.23%)
NFLX   189.80 (+3.12%)
S&P 500   3,892.59 (+1.24%)
DOW   31,323.49 (+0.92%)
QQQ   293.73 (+1.71%)
AAPL   145.60 (+1.88%)
MSFT   267.91 (+0.64%)
META   171.75 (+1.17%)
GOOGL   2,350.32 (+2.57%)
AMZN   116.08 (+1.53%)
TSLA   727.10 (+4.59%)
NVDA   157.54 (+4.12%)
NIO   22.34 (+7.25%)
BABA   123.60 (+3.76%)
AMD   79.12 (+5.00%)
MU   58.48 (+1.93%)
CGC   2.68 (+1.13%)
T   21.15 (+0.28%)
GE   62.33 (+1.23%)
F   11.56 (+4.52%)
DIS   97.18 (+1.14%)
AMC   13.73 (+9.23%)
PFE   53.11 (+0.68%)
PYPL   74.87 (+2.23%)
NFLX   189.80 (+3.12%)
S&P 500   3,892.59 (+1.24%)
DOW   31,323.49 (+0.92%)
QQQ   293.73 (+1.71%)
AAPL   145.60 (+1.88%)
MSFT   267.91 (+0.64%)
META   171.75 (+1.17%)
GOOGL   2,350.32 (+2.57%)
AMZN   116.08 (+1.53%)
TSLA   727.10 (+4.59%)
NVDA   157.54 (+4.12%)
NIO   22.34 (+7.25%)
BABA   123.60 (+3.76%)
AMD   79.12 (+5.00%)
MU   58.48 (+1.93%)
CGC   2.68 (+1.13%)
T   21.15 (+0.28%)
GE   62.33 (+1.23%)
F   11.56 (+4.52%)
DIS   97.18 (+1.14%)
AMC   13.73 (+9.23%)
PFE   53.11 (+0.68%)
PYPL   74.87 (+2.23%)
NFLX   189.80 (+3.12%)
S&P 500   3,892.59 (+1.24%)
DOW   31,323.49 (+0.92%)
QQQ   293.73 (+1.71%)
AAPL   145.60 (+1.88%)
MSFT   267.91 (+0.64%)
META   171.75 (+1.17%)
GOOGL   2,350.32 (+2.57%)
AMZN   116.08 (+1.53%)
TSLA   727.10 (+4.59%)
NVDA   157.54 (+4.12%)
NIO   22.34 (+7.25%)
BABA   123.60 (+3.76%)
AMD   79.12 (+5.00%)
MU   58.48 (+1.93%)
CGC   2.68 (+1.13%)
T   21.15 (+0.28%)
GE   62.33 (+1.23%)
F   11.56 (+4.52%)
DIS   97.18 (+1.14%)
AMC   13.73 (+9.23%)
PFE   53.11 (+0.68%)
PYPL   74.87 (+2.23%)
NFLX   189.80 (+3.12%)

CrowdStrike: A Cybersecurity Unicorn

Tuesday, May 24, 2022 | Matthew North
CrowdStrike: A Cybersecurity Unicorn

Crowdstrike (NASDAQ: CRWD) operates in an intensely competitive cloud environment, with its main rival freemium model provider Cloudflare (NET). Despite the intense level of competition from its main rival, Crowdstrike continues to make strong gains in YoY revenue growth and most importantly, in free cash flow. Many cloud companies share the same weaknesses as other tech stocks in that they rarely produce cash flow for investors in their early years, or in Cloudflare’s case - for decades. The financial strength of Crowdstrike should not be understated and this is an important valuation metric when comparing the two companies, with Cloudflare opting for a longer-term play of total cash reinvestment.

CrowdStrike’s Impressive Fundamentals

CrowdStrike has excellent top-line growth. The company’s sales surged from $250 million in FY 2019 to $1.4 billion in FY 2022. The company is projected to continue its strong sales growth in the future. Analysts predict that Crowdstrike will generate $6.6 billion in yearly revenues by FY 2027. The strong top-line growth is catalyzed by the accelerating growth and cost of cyber attacks, particularly cyber extortion which surged during the pandemic.

Another feather in CrowdStrike’s cap is the fact that the company’s growth is also extremely consistent. The business beat revenue estimates each month since its IPO. Strong sales growth for CrowdStrike also comes with an enviable market share. The company currently owns 14.2% of the market, and its total addressable market is growing fast. Management estimated that its market was worth $25 billion at the time of its IPO, this number has since swelled to an impressive $126 billion due to increased demand for its services. Crowdstrike’s ultimate bottom line of free cash flow is also growing at a steady rate. Its free cash flow margin is expected to end at 30% for FY 2022. In summary, Crowdstrike offers high growth for investors while also being exceptionally profitable.


How CrowdStrike is Positioned for Future Growth in Cybersecurity

With a $126 billion TAM, Crowdstrike is competitively positioned to help companies secure their cloud environments with its Application Protection Platform (CNAPP). The business provides full-stack protection, meaning cloud configurations of any kind can optimize and protect their cloud architectures. This also allows for increased visibility and compliance to help prevent breaches and to monitor for misconfigurations. IT professionals can then manage their cloud workloads from one unified dashboard.

The company’s CNAPP platform offers additional protections against cyber extortion attacks, which are now the costliest form of attack for enterprises. The average cyber extortion demand climbed 82% from 2020 to 2021, with some payments being as high as $500,000. The total cost of cybercrime is estimated to end at $10.5 trillion per year by 2025.

CrowdStrike’s Price is Disconnected from its Fundamentals

No tech stock was spared from investors’ shifting risk appetites towards companies that are perceived to better hedge against inflation and rising interest rates, which includes exceptional companies like CrowdStrike.  The company is currently down 24.74% YTD and is trading significantly below the MarketBeat consensus price target.  This selloff is not as severe as some of its peers, which is owed to its incredible revenue growth and free cash flow. 

When using linear regression techniques, the company's average price is still moving laterally over the long-term, which is despite the strong recent sell-off. The stock is clinging tightly to the lower deviation of the Bollinger Band and has since bounced off to give some breathing room for the bulls. The short-term expectation for the stock is that it will continue at lower levels. When the market moves from its accumulation phase to distribution again, it seems likely that many investors who buy now will be able to snatch up a strong company at a severely discounted share price.

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
CrowdStrike (CRWD)
2.2392 of 5 stars
$191.98+3.3%N/A-243.01Buy$248.57
Compare These Stocks  Add These Stocks to My Watchlist 

Should you invest $1,000 in CrowdStrike right now?

Before you consider CrowdStrike, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and CrowdStrike wasn't on the list.

While CrowdStrike currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The 5 Stocks Here

Free Email Newsletter

Complete the form below to receive the latest headlines and analysts' recommendations for your stocks with our free daily email newsletter:


Most Read This Week

Recent Articles

Search Headlines:

Latest PodcastIs The Market Near a Bottom, Does it Matter?

Today’s interview is a little different, in that you get a LOT of market perspective from someone who’s been analyzing stocks from the ground up, for more than three decades. In this conversation, Kate chats with Nancy Zambell, the chief analyst for the Cabot Money Club Letter - and Nancy has a really deep and varied background in the financial industry - as she mentions in this interview, she’s been a banker, real estate professional, and a stock market analyst.

MarketBeat Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at contact@marketbeat.com | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.