CrowdStrike: Good Company, Bad Stock

Summary

• CrowdStrike has been delivering exceptional growth in a very difficult environment where most enterprise SaaS peers are struggling.
• The product portfolio continues to evolve with new offerings in cloud and identify, where emerging solutions generated record ARR with 129% growth in the last quarter.
• Management highlighted a larger long-term TAM in the recent Investor Briefing, while notes from the partner panel indicate big deals are still happening.
• There are no cracks in the business, but valuation remains a major source of risks, as bigger catalysts will be needed to trigger further re-rating to the upside.
• Sit back, relax, and wait for a better buying opportunity.

piranka

Growing and gaining share

CrowdStrike (NASDAQ:CRWD) has been an exceptional growth story, while most companies within the software sector have been struggling with slowing growth under the current macro backdrop. The company is a leading cloud-native provider of corporate endpoint

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.