Is CRWD a good stock to buy? We came across a bullish thesis on CrowdStrike Holdings, Inc. on Nikhs’s Substack. In this article, we will summarize the bulls’ thesis on CRWD. CrowdStrike Holdings, Inc.’s share was trading at $647.74 as of June 10th. CRWD’s trailing and forward P/E were 401.83 and 131.58 respectively according to Yahoo Finance.
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CrowdStrike Holdings, Inc. (CRWD) remains one of the most compelling cybersecurity businesses in the market as its investment case increasingly extends beyond endpoint protection toward becoming critical security infrastructure for the AI era. The company’s first-quarter FY2027 results reinforced the view that Falcon is evolving into a data-rich platform that sits at the center of enterprise security workflows, benefiting from growing adoption of AI agents, cloud workloads, identity management, SIEM, and automated detection and response capabilities.
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Revenue increased 26% year-over-year to $1.39 billion, ending ARR reached $5.51 billion, net new ARR grew 32% to $256 million, and free cash flow reached $468 million, representing a strong 34% margin. While some investors were disappointed that ARR growth did not exceed elevated expectations, the quarter demonstrated continued momentum across CrowdStrike’s strategic initiatives.
Next-Gen SIEM surpassed $600 million in ARR, combined Cloud, Identity, and SIEM ARR exceeded $2 billion, and Flex ARR grew 99% year-over-year to more than $1.9 billion, highlighting increasing platform adoption and customer consolidation.
The bullish thesis centers on CrowdStrike’s ability to leverage its telemetry, data, and workflow integration to become the control and remediation layer for AI-driven security environments. As AI increases software complexity, machine activity, and vulnerability discovery, enterprises may require deeper visibility, faster response, and continuous remediation, all areas where Falcon is already embedded.
If CrowdStrike successfully achieves this infrastructure-like role, management’s long-term opportunity could expand significantly, with the most optimistic scenario suggesting the stock could be worth approximately $1,050 to $1,400 per share versus current levels. Although further ARR acceleration is needed to fully validate the thesis, the company’s competitive positioning, expanding platform, and AI-driven tailwinds continue to support a favorable long-term outlook.
Previously, we covered a bullish thesis on CrowdStrike Holdings, Inc. (CRWD) by Bulls On Parade in February 2025, which highlighted the company’s recovery from the July 2024 outage, cybersecurity platform consolidation, and long-term ARR growth potential despite near-term headwinds. CRWD’s stock price has appreciated by approximately 70.35% since our coverage. Nikhs shares a similar view but emphasizes on CrowdStrike’s evolution into AI-era security infrastructure and its expanding role in securing AI-driven enterprise workflows.
CrowdStrike Holdings, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 79 hedge fund portfolios held CRWD at the end of the first quarter which was 67 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.
Disclosure: None.
