5 Best Cybersecurity Stocks to Buy Now

2. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)

Number of Hedge Fund Holders: 66

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) was held by 66 hedge funds at the end of Q4 2022. These funds held positions worth $1.64 billion in the company. As of December 31, SCGE Management is the top shareholder in the company and has disclosed a stake worth $154 million.

On March 8, Deutsche Bank raised its price target on Crowdstrike Holdings, Inc. (NASDAQ:CRWD) to $130 from $115 and reiterated a Hold rating on the shares. Shares of Crowdstrike Holdings, Inc. (NASDAQ:CRWD) have surged by 29.03% since the beginning of 2023, as of March 22, and the stock is placed second on our list of the best cybersecurity stocks to buy now.

Alger Capital made the following comment about CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its Q4 2022 investor letter:

“CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leader in the Endpoint Protection Platform (EPP) market, where EPP solutions help protect enterprises’ internet-connected devices from cyber-attacks. The company also benefits from a market shift from signature-based- on-premises solutions to cloud-based platforms using Al and machine learning. CrowdStrike’s platform is one of the few 100% cloud-based architectures and we believe it is well positioned to displace incumbents with its advanced detection and remediation capabilities. During the period, shares underperformed as the company reported quarterly results slightly below expectations, where annual-recurring-revenue (ARR) and Net New ARR (NNARR) came in below consensus. Moreover, management guided fiscal 2023 revenue slightly below estimates, and mentioned that small-to-medium sized business (SMB) customers are increasingly delaying purchasing decisions given the tougher operating environment, leading to longer sales cycles. They also noted that larger enterprise customers are reducing operating expenses as they navigate next year’s challenging environment. Management also addressed that signing a number of contracts with multiphase subscription start dates would result in pushing ARR recognition out into future quarters and expects this trend to persist in near term.”