By using this site, you agree to the Privacy Policy and Terms of Use.
Accept

News Junction

Notification Show More
Font ResizerAa
  • Home
  • World News
    World NewsShow More
    Trump to speak with Putin today on ending Ukraine ‘bloodbath’ – after Russia carries out largest drone attack since start of war | World News
    Trump to speak with Putin today on ending Ukraine ‘bloodbath’ – after Russia carries out largest drone attack since start of war | World News
    May 19, 2025
    Portuguese PM’s party set to win general election, fall short of majority | Elections News
    Portuguese PM’s party set to win general election, fall short of majority | Elections News
    May 19, 2025
    Pro-EU candidate wins Romanian presidential election rerun — RT World News
    Pro-EU candidate wins Romanian presidential election rerun — RT World News
    May 19, 2025
    Joe Biden diagnosed with prostate cancer
    Joe Biden diagnosed with prostate cancer
    May 19, 2025
    Mark Carney meets Pope Leo XIV after inaugural mass at the Vatican – National
    Mark Carney meets Pope Leo XIV after inaugural mass at the Vatican – National
    May 19, 2025
  • Business
    BusinessShow More
    Ukraine blows up bridges to consolidate its positions in Russia
    Ukraine blows up bridges to consolidate its positions in Russia
    August 18, 2024
    Commentary: AI phones from Google and Apple will erode trust in everything
    Commentary: AI phones from Google and Apple will erode trust in everything
    August 18, 2024
    The most famous Indian Dishes – Insights Success
    The most famous Indian Dishes – Insights Success
    August 18, 2024
    Life on the road as a female long rides cyclist
    Life on the road as a female long rides cyclist
    August 18, 2024
    UK inflation rises to 2.2%
    UK inflation rises to 2.2%
    August 18, 2024
  • Cryptocurrency
    CryptocurrencyShow More
    Bitcoin blasts past 6K: is Trump’s remittance tax bill crypto’s new rocket fuel?
    Bitcoin blasts past $106K: is Trump’s remittance tax bill crypto’s new rocket fuel?
    May 19, 2025
    Coinbase faces SEC probe over historical user metrics: report
    Coinbase faces SEC probe over historical user metrics: report
    May 19, 2025
    Dogecoin Price Prediction: How an 11-Year Solar Cycle May Be Driving the Charts
    Dogecoin Price Prediction: How an 11-Year Solar Cycle May Be Driving the Charts
    May 19, 2025
    New Zealand Man Arrested In 5 Million Crypto Scam Probe
    New Zealand Man Arrested In $265 Million Crypto Scam Probe
    May 19, 2025
    BTC Nears Bullish Golden Cross as Moody’s Downgrades U.S., Citing Debt Concerns
    BTC Nears Bullish Golden Cross as Moody’s Downgrades U.S., Citing Debt Concerns
    May 19, 2025
  • Technology
    TechnologyShow More
    How to Improve Your Spotify Recommendations
    How to Improve Your Spotify Recommendations
    August 18, 2024
    X says it’s closing operations in Brazil
    X says it’s closing operations in Brazil
    August 18, 2024
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    August 18, 2024
    Scientists Want to See Videos of Your Cat for a New Study
    Scientists Want to See Videos of Your Cat for a New Study
    August 18, 2024
    OpenAI’s new voice mode let me talk with my phone, not to it
    OpenAI’s new voice mode let me talk with my phone, not to it
    August 18, 2024
  • Entertainment
  • Sports News
  • People
  • Trend
Reading: Should You Buy CrowdStrike Stock Now That It’s Part of the S&P 500?
Share
Font ResizerAa

News Junction

  • World News
  • Business
  • Technology
  • Cryptocurrency
  • Trend
  • Entertainment
Search
  • Recent Headlines in Entertainment, World News, and Cryptocurrency – NewsJunction
  • World News
  • Business
  • Cryptocurrency
  • Technology
  • Entertainment
  • Sports News
  • People
  • Trend
Have an existing account? Sign In
Follow US
News Junction > Blog > Business > Should You Buy CrowdStrike Stock Now That It’s Part of the S&P 500?
Should You Buy CrowdStrike Stock Now That It’s Part of the S&P 500?
Business

Should You Buy CrowdStrike Stock Now That It’s Part of the S&P 500?

Published July 1, 2024
Share
6 Min Read
SHARE

Contents
CrowdStrike is in a league of its ownThe party is just getting startedIs CrowdStrike a good stock to buy right now?Should you invest $1,000 in CrowdStrike right now?

The latest rebalancing for the S&P 500 took place in mid-June, and cybersecurity darling CrowdStrike (NASDAQ: CRWD) earned a spot in the esteemed index. While getting added to the S&P 500 is an impressive milestone, it’s not reason enough to buy a stock. Nevertheless, CrowdStrike is firing on all cylinders, and I think it’s best days are ahead.

Let’s dig into the company’s progress and explore why now is a lucrative opportunity for long-term investors to own CrowdStrike.

CrowdStrike is in a league of its own

CrowdStrike operates in the cybersecurity industry and specializes in threat detection and endpoint protection through its flagship platform, called Falcon. While the cybersecurity landscape is ripe with competition, CrowdStrike stands out as a winner, thanks to its proven ability to cross-sell.

For the company’s first quarter of fiscal 2025 (ended April 30), nearly two-thirds of CrowdStrike’s total customers were using five or more products. Moreover, new deals with eight or more products increased 95% year over year. By selling multiple products to its customer base, CrowdStrike can expand its recurring revenue base, all while recognizing strong profit growth.

For the quarter ended April 30, CrowdStrike’s annual recurring revenue (ARR) increased 33% year over year to $3.7 billion. Furthermore, the company posted net income of $43 million during the first quarter, compared to just $0.5 million during the same period last year.

The combination of accelerating revenue and profit growth is encouraging, and I think it’s just getting started.

A computer screen notifying users that the system has been hacked

Image source: Getty Images

The party is just getting started

Back in 2022, CrowdStrike released an investor presentation showcasing a total addressable market (TAM) size of $75 billion at that time. Management further explained that with the company’s current product portfolio at that time, the TAM could reach $97 billion by 2025 and $158 billion by 2026 should CrowdStrike execute on its new-product roadmap.

Clearly, a lot has changed over the last couple of years. Not only are cybersecurity protocols more important than ever to combat hackers and protect data and privacy, but developments in artificial intelligence (AI) are making their way to just about every use case in the tech realm.

According to the company’s most recent investor presentation, CrowdStrike now believes its TAM is $100 billion. What’s more, management sees the addressable market expanding to $225 billion by 2028 as generative AI becomes increasingly featured in cybersecurity tools.

Is CrowdStrike a good stock to buy right now?

CrowdStrike has proven that it can compete in an intense cybersecurity market and do so in a highly profitable way. Moreover, as AI demand continues to surge, the company should be in a position to benefit from secular tailwinds.

The one drawback of investing in CrowdStrike is its pricey valuation. Right now, its stock trades at a forward price-to-earnings (P/E) ratio of 96 and a price-to-free-cash-flow (P/FCF) multiple of 93.

Simply put, the stock is expensive — even for growth investors. With that said, I still think CrowdStrike is a compelling opportunity.

The rate at which the company and its addressable market are growing shouldn’t go unnoticed. Cybersecurity in and of itself is a big market, and CrowdStrike has built a formidable position, even though there are many larger, better-capitalized players. Furthermore, now that AI has become increasingly more important for businesses of all sizes, CrowdStrike fits squarely at the intersection of two of the tech sector’s hottest end markets.

Considering the company’s ARR of $3.7 billion represents only 1.6% of the current estimated market size, CrowdStrike has a long way to go before its business starts to mature or plateau.

I think CrowdStrike’s premium valuation is warranted and I am optimistic the company can continue generating strong top-line growth, supplemented by robust cash flow. Long-term investors may want to consider a position in CrowdStrike as a hedge to other AI stocks. It’s a leading company among cybersecurity opportunities.

Should you invest $1,000 in CrowdStrike right now?

Before you buy stock in CrowdStrike, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CrowdStrike wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $757,001!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

See the 10 stocks »

*Stock Advisor returns as of June 24, 2024

Adam Spatacco has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike. The Motley Fool has a disclosure policy.

Should You Buy CrowdStrike Stock Now That It’s Part of the S&P 500? was originally published by The Motley Fool

#Buy #CrowdStrike #Stock #Part

TAGGED:buyCrowdStrikepartStock
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Share
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Previous Article Travis Kelce Joined by Julia Roberts at Taylor Swift’s Dublin Concert Travis Kelce Joined by Julia Roberts at Taylor Swift’s Dublin Concert
Next Article What are the big issues that will decide the UK election? | Elections What are the big issues that will decide the UK election? | Elections
- Advertisement -

Latest Post

Bitcoin blasts past 6K: is Trump’s remittance tax bill crypto’s new rocket fuel?
Bitcoin blasts past $106K: is Trump’s remittance tax bill crypto’s new rocket fuel?
Cryptocurrency
Trump to speak with Putin today on ending Ukraine ‘bloodbath’ – after Russia carries out largest drone attack since start of war | World News
Trump to speak with Putin today on ending Ukraine ‘bloodbath’ – after Russia carries out largest drone attack since start of war | World News
World News
Coinbase faces SEC probe over historical user metrics: report
Coinbase faces SEC probe over historical user metrics: report
Cryptocurrency
Portuguese PM’s party set to win general election, fall short of majority | Elections News
Portuguese PM’s party set to win general election, fall short of majority | Elections News
World News
Dogecoin Price Prediction: How an 11-Year Solar Cycle May Be Driving the Charts
Dogecoin Price Prediction: How an 11-Year Solar Cycle May Be Driving the Charts
Cryptocurrency
Pro-EU candidate wins Romanian presidential election rerun — RT World News
Pro-EU candidate wins Romanian presidential election rerun — RT World News
World News
- Advertisement -

You Might Also Like

Kenya settles Sh72bn Eurobond debt balance with World Bank cash
Business

Kenya settles Sh72bn Eurobond debt balance with World Bank cash

June 24, 2024
Working longer won’t solve the retirement crisis — seniors need a ‘Gray New Deal’ to retire with dignity, this economist says
Business

Working longer won’t solve the retirement crisis — seniors need a ‘Gray New Deal’ to retire with dignity, this economist says

January 30, 2024
US space startups’ latest struggles marked by layoffs, shake-ups
Business

US space startups’ latest struggles marked by layoffs, shake-ups

August 15, 2023
Biden really wants to tout a 0 billion boom, but ‘we are decades into structurally declining manufacturing employment,’ top economist says
Business

Biden really wants to tout a $500 billion boom, but ‘we are decades into structurally declining manufacturing employment,’ top economist says

August 9, 2023

About Us

NEWS JUNCTION (NewsJunction.xyz) Your trusted destination for global news. Stay informed with our timely and accurate reporting on diverse topics, including politics, technology, science, entertainment, sports, and more. Count on us for unbiased and reliable updates at your fingertips.

Quick Link

  • About
  • Disclaimer
  • Privacy Policy
  • Terms of Use
  • Contact

Top Categories

  • World News
  • Business
  • Technology
  • Entertainment
  • Cryptocurrency
  • Sports News
  • Trend
  • People

Subscribe

Subscribe to our newsletter to get our newest articles instantly!

    © 2023 News Junction.
    • Blog
    • Advertise
    • Contact
    Welcome Back!

    Sign in to your account

    Username or Email Address
    Password

    Lost your password?