What Caught Our Attention in the Investment World? – Week of November 30-December 4, 2020

By Kuldip K. Ambastha

On Thursday, December 3, 2020, CrowdStrike Holdings, Inc. (CRWD) had a +13.6% return for the day. The company delivered a $0.08 adjusted earnings per share figure for 3Q2020, well above the expected consensus estimate of $0.00. The cybersecurity company CrowdStrike Holdings has been successful during the current global coronavirus pandemic era. The quarterly revenue figure of $232.5 million during 3Q2020 surpassed the 3Q2019 figure by 86%. For 4Q2020, revenue of $245.5-$250.0 million is expected and this range is above the $230.0 million consensus estimate. As people move more and more to cloud computing due to a need to work from home due to the pandemic, there is more and more of a need for strong cybersecurity such as what CrowdStrike offers. CrowdStrike sees this trend as sustainable going forward (given a wide variety of data the company has collected and researched), and not a one-shot opportunity which will go away after the pandemic is over.

CrowdStrike Falcon is a cybersecurity offering that is well-positioned to protect work documents saved to the cloud. Aside from cybersecurity, the company has vulnerability management, intelligence, and many other modules to offer to potential clients. New client onboarding, cross-selling into the existing client base, and net retention figures have all been strong for the company in 2020. At Fal.Con, the company’s user conference, corporate management announced the launch of a new module called CrowdStrike Falcon Horizon. This module analyzes a client’s security posture and ensures that misconfigurations are not present. CrowdStrike Falcon Horizon is yet another module which is well-positioned to add value to clients. CrowdStrike Holdings may have a bright future ahead, if the current trend is sustained going forward.

Keywords – CrowdStrike Holdings, Inc., CrowdStrike Holdings, CrowdStrike, CRWD, 3Q2020, 4Q2020, technology, tech, cybersecurity, security, cloud computing, earnings per share, EPS, revenues, consensus estimate, module, product, service, CrowdStrike Falcon, Fal.Con, CrowdStrike Falcon Horizon, sustainable trend, data analysis, global, coronavirus, COVID-19, pandemic.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in CRWD.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2020 – Ambastha Financial LLC.

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