Jim Cramer on CrowdStrike: “One of the Greatest Comebacks in Business History”

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is one of the 13 stocks recently discussed by Jim Cramer. Discussing its recent valuation downgrade, Cramer emphasized that the company is doing well despite the massive worldwide outage it caused in July 2024.

“How about CrowdStrike, the cybersecurity play that we own for CNBC Investing Club. This morning, Piper Sandler downgraded the stock. The analyst says he can’t foresee anything near term that would ‘meaningfully increase numbers or our terminal multiple, already the highest across our coverage universe.’ Okay, so CrowdStrike’s gone up a lot and it’s certainly expensive, but then get this, ‘Yes, this is a valuation goal again. There is a sense of deja vu as it was July of last year when we lowered our opinion on valuation.’

Again, I get that. I mean, if you recall, last year on July 19th, CrowdStrike had a bug that shut down 8 million computers worldwide. We’re about to annualize that out, and I think it’ll be celebrated. It’s one of the greatest comebacks in business history… CEO George Kurtz met with as many customers as possible and kept most of the business, allowing this stock to roar. I think he’ll get a lot of full-price contracts out of the companies he offered discounts to last summer, giving him a good chance to raise numbers, number bumps coming.

So I’m not going to take this valuation downgrade seriously, given… the fact that the analyst was indeed dead wrong when it did the same thing last July. Full disclosure, we sold some CrowdStrike for the Charitable Trust in an effort to balance our portfolio, but we’re not making a call to the stock’s valuation. We regularly trim our winners simply because we don’t want to be greedy…

Some stocks deserve the benefit of the doubt. With Netflix, CrowdStrike, and Wells Fargo, you’re buying into franchises with excellent bona fides and very smart CEOs. I’d much rather stick with these winners than sell them on valuation worries. I just don’t think you’ll be able to get back into such high-quality stocks at an easy-to-find lower level.”

Security personnel at their consoles, monitoring a global network of threats in real-time.

CrowdStrike (NASDAQ:CRWD) delivers cybersecurity solutions through a subscription-based SaaS model, and focuses on endpoint and cloud workload protection, identity security, data protection, threat intelligence, and AI-driven security automation.

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Disclosure: None. This article is originally published at Insider Monkey.