Crowdstrike (CRWD) is a Texas-based cybersecurity company that specializes in end-point security, threat intelligence, and cyberattack response services. It achieves this through its Falcon platform, which uses artificial intelligence to offer protection against cyber attacks.
What makes Crowdstrike stand out from the competition is the cloud-based delivery of its services. The cloud-native architecture allows the company to scale seamlessly and integrate with multiple environments without any issues. This is one reason why the company can serve a diverse set of clients across the globe.
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Crowdstrike’s main product is the Falcon platform, which offers threat intelligence, endpoint protection, and incident response services. This platform brings in consistent revenue for the company through a subscription model. This model allows the company to have predictable revenues, which help it finance its R&D and growth.
The company serves over 29,000 clients spread across the world. These clients span sectors like healthcare, retail, technology, and government sectors. Some of its customers include Big Tech companies like Amazon and Google, which shows that the company is a leader in providing cybersecurity services.
Effects of the global outage
Crowdstrike stock has been on a decline since the company triggered a global outage of IT systems that caused much of the world’s important infrastructure to shut down. The incident has become a nightmare for insurance companies and many other businesses.
The exact financial damage caused by the incident is not yet known. However, the company will need a few quarters to recover from the damages. For now, the company’s legal teams are dealing with the claims as they arrive. Some government intervention may be necessary if the damages reach a level that threatens the existence of the company.
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The reason the government may intervene is because cybersecurity is becoming an increasingly common issue in the US. Some analysts suggest an investment in the cybersecurity infrastructure similar to what the CHIPS ACT is doing for semiconductor manufacturing infrastructure. If that happens, Crowdstrike could be a major beneficiary.
The stock price is down over 30% from all-time highs. It could be a good entry point to get exposure to the sector.
The global demand for cybersecurity services is only going to grow moving forward. Crowdstrike can leverage its position as the leader in its sector to benefit from services protecting against increased cyber security threats. The current financial position of the company gives it a good base to continue to serve clients across the globe, bringing shareholders incredible returns.
Crowdstrike isn’t on our latest list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 69 hedge fund portfolios held CRWD at the end of the second quarter which was 76 in the previous quarter. While we acknowledge the potential of CRWD as a leading cybersecurity investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as CRWD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
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