Investing in a promising tech start-up can have massive disruptive potential but also poses the risk of loss if the developing company fails to deliver. Many investors remain reserved until the company grabs a firm hold of the market, offers a scalable and diverse portfolio, and embarks on the path to growth before investing. However, investing before all this can have enormous benefits for early-bird investors.
This tech start-up stock has concluded the transition from obscure to omnipotent, with green signals across the board in the somewhat shaky cybersecurity sector. We present CrowdStrike (NASDAQ: CRWD), the tech start-up stock on the path to market domination.
A cybersecurity stock beating expectations
The company was founded in 2011 and has its headquarters in Austin, Texas. It operates primarily through subscriptions offered to a worldwide network of partners and clients via its Falcon platform and cloud modules.
The CrowdStrike stock is a Nasdaq-100 component. It trades on the NASDAQ under the CRWD ticker symbol.
CrowdStrike keeping cybersecurity stock hopes high
CrowdStrike proved that the sector can still experience growth amid the alleged “spending fatigue” among its customers.
Notably, cybersecurity stocks rose on March 6 after CrowdStrike’s quarterly earnings report and fiscal performance beat Wall Street predictions. While analysts predicted CRWD’s approximate earnings per share (EPS) of $0.82, the stock achieved an enviable $0.95. Also, it surpassed the expected $839 million and managed to hit $845.3 million.
This start-up stock received a further surge of interest due to its expansive quarterly and annual guidance, which were published simultaneously. For the current quarter, the company forecasts adjusted earnings of between $0.89 and $0.90 a share on revenue of $902.2 million to $905.8 million. For the ongoing yearly estimates, the company predicts earnings per share to land within $3.77 to $3.97 and achieve a revenue of between $3.92 billion and $3.99 billion. Needless to say, the guidance went past Wall Street’s estimates.
This success came at the tail of the Palo Alto stock crash, as February 20 witnessed a nearly 27% drop in cybersecurity stock prices.
CrowdStrike stock price today
At the moment, CrowdStrike stock price stands at $329.57, reflecting a strong increase of 31.06% year-to-date or $82.68.
CrowdStrike stock past performance
CWRD has grown substantially in recent years, with the five-year chart for the shares recording a 363.78% increase. However, this rise was not a straight line, with the share value rising in 2021, falling in 2022, and rising again in 2023.
Similar disturbances have occurred this year, but the stock is still 20.52% up and at a record all-time high.
Further expansion and plans for the future
Reaping the fruits of its smart and diligent effort, CrowdStrike is to continue expanding and acquire Flow Security, an Israeli start-up dedicated to developing a cloud data runtime security feature. It intends to implement the data security posture management (DSPM) solution into its Falcom platform.
The precise sum is not publicly available, but estimates put it at between $200 million and $220 million.
The bottom line
CrowdStrike is the perfect example of a tech start-up stock growing from obscurity to market domination within the span of several years, becoming the number one asset in the cybersecurity sector, perhaps even one of the most lucrative young companies to invest in throughout the technology sector.
Considering the length at which it surpassed its competitors and the fact that it kept its respective sector from declining nearly single-handedly in this quarter, it goes without saying that CrowdStrike is poised for even more growth and a greater degree of market domination.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
