Summary
- CrowdStrike remains a cybersecurity leader with strong fundamentals, but current valuations are stretched and leave little margin for error.
- CRWD’s ~20% ARR growth and robust free cash flow margin justify a premium, but expectations for continued outperformance are already priced in.
- AI leadership and platform consolidation support CRWD’s growth thesis, yet competitive threats and slowing growth temper long-term optimism.
- I rate CRWD as a Hold; fresh investments should await a meaningful correction or visible growth acceleration beyond current high expectations.
Mny-Jhee/iStock via Getty Images
It is hard to find a Buy at a reasonable price in the cybersecurity pack at the moment. …
Summary
- CrowdStrike remains a cybersecurity leader with strong fundamentals, but current valuations are stretched and leave little margin for error.
- CRWD’s ~20% ARR growth and robust free cash flow margin justify a premium, but expectations for continued outperformance are already priced in.
- AI leadership and platform consolidation support CRWD’s growth thesis, yet competitive threats and slowing growth temper long-term optimism.
- I rate CRWD as a Hold; fresh investments should await a meaningful correction or visible growth acceleration beyond current high expectations.
Mny-Jhee/iStock via Getty Images
It is hard to find a Buy at a reasonable price in the cybersecurity pack at the moment. Recently, I have written about Palo Alto and found the platform transformation broadly priced in, while the next
This article was written by
2.13K Followers
**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.
Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.