Cybersecurity Defense Wins Championships

Monthly Deep-Dive: CrowdStrike Holdings Inc. $CRWD

Investors,

In the fast-paced world of investing, few opportunities arise that have the potential to revolutionize an entire sector & be poised to benefit from technological tailwinds that will become increasingly important to the future. Today, I’m excited to analyze a company that potentially falls into this category and discover whether or not we should be interested in owning their equity for the years ahead.

The company in today’s crosshairs is CrowdStrike ($CRWD), a trailblazing cybersecurity company that has been living up to the hype & delivering extremely solid operating results quarter after quarter, year after year. Unquestionably, the cybersecurity industry will experience strong tailwinds for growth in the years (and even decades) ahead as digitization, interconnectedness, and internet adoption continue to become increasingly important aspects of our daily lives.

Imagine a scenario where a single cyberattack cripples a major corporation, leaving its systems paralyzed and sensitive data exposed. The aftermath is not just financial losses but also reputational damage and shattered trust. What about an attack against a nationstate? As our interconnected world grows, so do the threats of cyberattacks. Over the past few decades, cybersecurity companies have stepped into the limelight, and CrowdStrike shines amongst the brightest.

In a sector with extreme competition and amazing tailwinds for growth, it’s very important to pick wisely. Between Palo Alto Networks PANW 0.00%↑, Fortinet FTNT 0.00%↑, Zscaler ZS 0.00%↑, Cloudflare NET 0.00%↑, Check Point Software CHKP 0.00%↑, the opportunity costs within the sector are extremely high and the wrong choice could be the difference between a 5x return or a 10x return over the next 10 years. Both are great — but one is clearly much more preferred.

This analysis will focus exclusively on the investment opportunity in CrowdStrike; however, we will also be assessing CRWD vs. other cybersecurity companies from a financial perspective to ensure that the quantitative metrics are at the top of the pack. If not, perhaps one of the others offers a better opportunity, and that’s totally fine! What’s important is that we find out, based on a thorough analysis of the company.

The purpose of these monthly reports is to objectively analyze a company that you and other subscribers vote on — I have no skin in the game for this particular company and I’m going to evaluate the merits of the business with a fresh pair of eyes. I’m even interested in this company (and the sector overall), so I want to properly research the investment thesis to know if CRWD deserves a place in my portfolio.

To read this report, vote for the next company that I’ll analyze, and benefit from all of the research from Cubic Analytics, please consider upgrading your membership today.