The cybersecurity stock, Crowdstrike, has established
itself as a leader in cloud-based endpoint security, which is extremely relevant
for just about every business, government, and organization that operates
today. Demand for these services is likely to keep rising over time, and
CrowdStrike is leaning into AI solutions to maintain its leadership throughout
an ever-changing environment.
CrowdStrike is potentially actionable as CRWD stock bounces from support at a key
level. Friday afternoon this AI stock was on track to close with a gain of more
than 8% for the week.
The stock is
entering November after four straight months of gains.
Near the end
of July, CRWD stock broke above a 162.25 buy point from a flat base. Although
the breakout initially failed, the stock retook the entry in late August,
following a strong earnings report.
Its product suite gets exceptional reviews from
third-party ratings organizations, and its customer data backs that up. The
company boasts an exceptional net dollar retention rate above 125%, indicating
that customers are pleased with its quality and value proposition. It's also
clear evidence the company is able to upsell its existing customer base as it
rolls out new services.
the CRWD Weekly Options Trade was Originally Executed!
Thwarting cyberattacks is critical in today's digital age. Not only are
cyberattacks damaging to internal systems, but they can also have significant
effects on how customers view a company. This makes it crucial to have
top-notch cybersecurity software protecting the most vulnerable spots: network
access points. These devices, like laptops or phones, can access a company's
internal servers and are prime targets for attackers.
Crowdstrike Holdings Inc (NASDAQ: CRWD) stock is on
a tear this year. The cybersecurity company has likely benefited from the focus
on artificial intelligence (AI) as investors scrambled to capitalize on this
increasingly important technology.
is a leader
in the endpoint protection industry and uses AI to enhance its protection. By
using machine learning (ML), a branch of AI, to understand what is normal
activity and what is a threat, it can pinpoint an attack quickly. After it
detects what it believes to be a breach, it shuts down the intruder and
prevents data loss. Once the attack concludes, CrowdStrike automatically
distributes information about that threat worldwide to protect other customers
from the same intrusion.
attacks have picked up again in 2023 after slowing the past couple of years.
For example, research firm Chainalysis recently said it has recorded nearly
$500 million in ransomware payments through the end of September, a nearly 50%
increase over the same period a year earlier.
ransomware attacks, hackers seize control of an organization's computer system
and data by installing malware. Further, they lock up a victim's computers with
"(The) cybersecurity spending environment appears to be
stable-to-improving relative to the past six months, with more optimism
regarding steady improvement toward the end of the year," William Blair
analyst Jonathan Ho said in a report.
CrowdStrike is benefiting from the rising demand for cyber-security solutions
owing to the slew of data breaches and the increasing necessity for security
and networking products amid the growing hybrid working trend. Continued
digital transformation and cloud-migration strategies adopted by organizations
are the key growth drivers.
CRWD’s portfolio strength, mainly the
Falcon platform’s 10 cloud modules, boosts its competitive edge and helps add
users. Additionally, strategic acquisitions, like that of Humio and Preempt,
are expected to drive growth for CRWD.
The CRWD Weekly
Options Trade Explained.....
** OPTION TRADE: Buy CRWD NOV
10 2023 175.000 CALLS - price at last close was $5.04 - adjust accordingly.
Obviously the results will vary from trader to trader
depending on entry cost and exit price that was undertaken.
Entered the CRWD Weekly Options (CALL) Trade on Monday, October 30, 2023, at 10:15, for $4.15. (some members may have
entered earlier for $5.00)
Sold half the CRWD weekly options contracts on Tuesday, October 31, 2023 for $6.43; a potential profit of55%.
Sold the remaining CRWD weekly options contracts on Friday, November 03, 2023 for $13.92; a potential profit of 235%.
Don’t miss out on further trades – become a
Holdings, Inc. is a US-based multinational cybersecurity company headquartered
in Austin, Texas. The company provides security solutions for cloud-based
workloads, endpoint security, threat intelligence and cyber-attack response.
Holdings, Inc. was founded by three partners in 2011. They brought on a 4th in
2012, a former FBI official, to lead the newly designated Crowdstrike Services
group. The group was intended to pair with existing services and provide
response services for victims of cyber-crimes. The company launched its first
product, Falcon, in 2013, and it is still the primary source of revenue. The
company counts cloud-based giants like Google, AWS, Redhat, Salesforce.com and
ServiceNow as clients, among many others.
In the time
since, Crowdstrike Holdings, Inc has been at the heart of the fight against
cybercrime. Its research and services have detected or been used to investigate
numerous high-profile events, including the Sony Pictures hack, the DNC hack
and espionage by China against the US.
Holdings, Inc entered a high-growth phase around 2015 and raised funds through
multiple capital raises. Google is a notable investor and one of the world’s
leading cloud infrastructure providers. The company maintains a high level of
institutional ownership to this day.
came to the public market in 2019. The company held its IPO on the NASDAQ
Exchange and surprised the market with its valuation and post-IPO action. The
stock first traded above the expected range and then quickly doubled in price.
However, investors had to endure a brief pullback to below the IPO price in
late 2019 and early 2020, which was negated by a surge in demand spurred by the
COVID-19 pandemic. Total revenue in 2022 came in at $1.45 billion, up 66% from
the previous year.
offers its services via five packages all based on the core Falcon system. The
base package is called Falcon Go and is suited to smaller operations and those
just getting started with Crowdstrike. The highest level is Falcon Complete
which provides end-to-end security and response services. Services are
classified into three groups: prevention, response and assessment/evolution of
is the recognized leader in endpoint security. Endpoint security focuses on
securing digital endpoints such as computers, laptops and mobile devices used
by a network. Gartner’s Customer’s Choice Award is among the many awards and
recognitions, which the company has won for several years. On a category basis,
the company scored 4 out of 5 stars in all five categories, with responses from
more than 230 individual companies.
One of the
advantages of using Crowdstrike is its unified nature. Not only can users get
an end-to-end security package, but they can leverage its research capabilities
as well. These capabilities are seen in the proactive threat detection and
prevention tools at the cutting edge of today’s cybersecurity industry.
Advanced AI helps to connect the dots and provide more comprehensive
Further Catalysts for the CRWD Weekly Options Trade…..
technology has become the industry standard in endpoint protection, and
CrowdStrike was named a leader in the industry by tech research firm Gartner.
But CrowdStrike also has more than 20 other products that integrate with its
base offering, further expanding its reach as a cybersecurity partner for
businesses. With 63% of customers utilizing at least five products and 24%
deploying seven, it has done a great job expanding its reach.
company increasing annual recurring revenue by 37% to $2.93 billion in Q3 of FY
2024 (ended July 31), it's also seeing rapid growth despite its large size.
Furthermore, CrowdStrike is starting to generate profits, having posted
positive generally accepted accounting principles (GAAP) net income for the
past two quarters.
earnings release is anticipated that the company will report an EPS of $0.74,
marking an 85% rise compared to the same quarter of the previous year. In the
meantime, our current consensus estimate forecasts the revenue to be $777.1
million, indicating a 33.78% growth compared to the corresponding quarter of
the prior year.
In terms of
the entire fiscal year, the Consensus Estimates predict earnings of $2.82 per
share and a revenue of $3.04 billion, indicating changes of +83.12% and
+35.56%, respectively, from the former year.
CrowdStrike's platform continues to grow. For now, 63% of its customers
subscribe to at least five CrowdStrike security modules. Consequently, growth
is still considerable, though it has slowed noticeably. In fiscal 2023 ended
Jan. 31, revenue rose 54%.
So far, the
fiscal 2024 performance has not matched that level. The company had $1.4
billion in revenue in the first half of fiscal 2024 (ended July 31). That was
39% higher than in the same period of fiscal 2023 but a slowdown from the last
revenue led to a $35 million operating loss. But with $67 million in interest
income, it covered its remaining expenses and posted $9 million in net income
for the six-month period.
should not expect a significant slowdown in growth. For the fiscal year,
CrowdStrike forecasts just over $3 billion in revenue, which would be an
increase of 36%.
CrowdStrike can address many cybersecurity threats, users know its Falcon
Security Suite best for its endpoint security. An endpoint is any device that
interacts with the network, such as a PC, smartphone, or server.
recent focus on AI, artificial intelligence probably is not the differentiator
as some might assume. Like its peers, CrowdStrike has used the technology for
It uses a
form of AI called machine learning. As the name implies, as computers learn
more about potential threat, they automatically update the security suite to
machine learning includes generative AI, the type of AI that generates new data
from existing information. The company has introduced Charlotte AI, which helps
users understand the security threats confronting their organizations. It
offers threat intelligence using simple prompts and automates repetitive tasks
involving the collection and extraction of data.
the issued ratings of 41 analysts in the last year, the consensus rating for
CrowdStrike stock is Moderate Buy based on the current 4 hold ratings and 37
buy ratings for CRWD. The average twelve-month price prediction for CrowdStrike
is $190.64 with a high price target of $235.00 and a low price target of
has strong growth rate, is an industry-leading technology, and a market
opportunity expected to expand from $76 billion in 2023 to $158 billion by
CrowdStrike stock traded up $0.51 during trading on Friday, reaching $172.15.
315,030 shares of the stock were exchanged, compared to its average volume of
4,111,655. The company has a debt-to-equity ratio of 0.40, a quick ratio of
1.82 and a current ratio of 1.82. CrowdStrike Holdings, Inc. has a 1 year low
of $92.25 and a 1 year high of $191.99. The stock’s fifty day moving average is
$167.55 and its 200 day moving average is $152.22.