CrowdStrike Holdings, Inc. (CRWD): A Bull Case Theory

We came across a bullish thesis on CrowdStrike Holdings, Inc. on Business Ontology’s Substack by Lorenzo Bastianelli. In this article, we will summarize the bulls’ thesis on CRWD. CrowdStrike Holdings, Inc.’s share was trading at $475.96 as of July 18th. CRWD’s trailing and forward P/E were 401.83 and 135.14 respectively according to Yahoo Finance.

CrowdStrike Holdings, Inc. (CRWD) Latest AI Upgrade Targets Network Devices—Here’s What’s New

A technician in a laboratory, overseeing cutting edge cybersecurity solutions.

CrowdStrike (CRWD) opened FY 2025 strongly, reporting $1.1 billion in Q1 revenue, up 20% year-over-year, with Annual Recurring Revenue (ARR) rising 22% to $4.44 billion, underpinned by resilient demand for its Falcon platform. The business delivered a record $384 million operating cash flow and initiated a $1 billion buyback, underscoring management’s confidence.

Growth is driven by its Business Ontology—a unified, AI-native, cloud-powered cybersecurity platform that consolidates fragmented enterprise needs—anchored by broad adoption, with 67% of new deals involving eight or more Falcon modules and 28% of customers using generative AI tools like Charlotte AI. Despite lingering headwinds from the July 2024 incident, gross retention remained a best-in-class 97% and subscription gross margins held at 80%, reflecting deep customer loyalty.

Management expects Q1 to mark a trough in ARR growth, forecasting sequential acceleration from Q2, powered by Falcon Flex, a flexible subscription model amassing $3.2 billion in deals, and expanding module adoption, with 48% of customers on six or more modules. Innovation is enlarging the company’s total addressable market, with new AI-powered security offerings—from model scanning to network vulnerability assessment—and deeper integration with NVIDIA’s Enterprise AI Factory, positioning CrowdStrike as the default protector of “superhuman” AI agents and their workloads.

The company’s platform-centric strategy, sticky customer base, and structural AI tailwinds support CEO George Kurtz’s $10 billion ARR ambition. However, execution in the next two quarters will be critical to sustain growth momentum. Since the initial October 2024 deep dive done by the author, CRWD shares have appreciated from $304.97 to $468.41, highlighting investor conviction in its trajectory.

Previously, we covered a bullish thesis on CrowdStrike Holdings, Inc. (CRWD) by Bulls On Parade in February 2025, which highlighted its dominant Falcon platform and the July 2024 outage, creating a temporary buying opportunity. The stock has appreciated approximately 25%. Lorenzo Bastianelli shares a similar view but emphasizes AI-native platform adoption and accelerating ARR growth.

CrowdStrike Holdings, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge fund portfolios held CRWD at the end of the first quarter which was 77 in the previous quarter. While we acknowledge the risk and potential of CRWD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRWD and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.