HomeMarket News The Unstoppable Rise of...

The Unstoppable Rise of CrowdStrike: A Cybersecurity Giant The Unstoppable Rise of CrowdStrike: A Cybersecurity Giant

Actionable Trade Ideas

always free

What a phenomenal 15 months it has been for CrowdStrike Holdings (NASDAQ: CRWD) shareholders. Witnessing the stock surge by an astounding 200% since the start of 2023 is nothing short of remarkable. Yet, one question lingers on the tip of every investorโ€™s tongue: Is there more room to grow after this exhilarating rally?

In my humble opinion, the answer is a resounding yes. Letโ€™s delve into why.

A World Plagued by Cybercrime

The headlines are littered with tales of large-scale cyber assaults. The most recent devastating incident involves the February 2024 attack on Change Healthcareโ€”a breach that disrupted claims payments for multitudes of medical providers. With malicious actors running amok, organizations are shelling out swiftly to fortify their defenses. No enterprise wants to become the next hapless victim in the line of fire.

CrowdStrikeโ€™s Soaring Revenue Amidst the Cyber Spending Frenzy

Even before the most recent spate of cyber debacles, CrowdStrike had been steadily gaining traction. This momentum is largely attributed to its AI-driven cybersecurity solutions that empower clients to safeguard their systems, data, and endpoints.

As depicted in the chart below, the companyโ€™s revenue has witnessed an astronomical climb from $53 million in fiscal 2017 to over $2.2 billion by fiscal 2023.

Bar chart showing CrowdStrike's rising annual revenue from fiscal years 2017 through 2023.

Image source: Statista.

Moreover, the company saw its top line surge by another 36% in fiscal 2024 to a staggering $3.1 billion. CrowdStrikeโ€™s subscription-based model is proving to be a lucrative bet, with an impressive 62% of customers opting for more than five of its security modules.

Is CrowdStrike a Compelling Investment Opportunity?

As establishments, big and small alike, fortify their cybersecurity barricades, trailblazers in the industry such as CrowdStrike are stepping up to the plate. This burgeoning demand is propelling rapid revenue growth for the company, while simultaneously seeing improvements in margins and profits.

For investors with the fortitude to buy and hold, CrowdStrike remains a stock that demands serious consideration.

Considering an investment of $1,000 in CrowdStrike right now?

Before taking the plunge into CrowdStrike stock, ponder this:

The analyst team at Motley Fool Stock Advisor has pinpointed what they deem to be the 10 top stocks for investors to acquire presentlyโ€ฆ and CrowdStrike failed to make the list. The 10 selected stocks are anticipated to deliver substantial returns in the upcoming years.

Stock Advisor equips investors with a user-friendly roadmap to success, offering insights on constructing a portfolio, regular analyst updates, and two fresh stock recommendations each month. Since 2002, the Stock Advisor service has trounced the returns of the S&P 500 by over threefold*.

Discover the 10 stocks

*Stock Advisor returns as of March 18, 2024

Jake Lerch holds positions in CrowdStrike. The Motley Fool has positions in and endorses CrowdStrike. The Motley Fool operates under a disclosure policy.

The opinions and evaluations articulated herein are those of the author and may not align with those of Nasdaq, Inc.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.