Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Investing

CrowdStrike stock could dive in 2025 despite strong fundamentals

admin by admin
December 28, 2024
in Investing
0
CrowdStrike stock could dive in 2025 despite strong fundamentals
0
SHARES
4
VIEWS
Share on FacebookShare on Twitter

CrowdStrike stock price staged a strong recovery after crashing hard in August following its massive outage that cost companies millions of dollars. After plunging to $200.9 in August, the stock surged to $388 after publishing better-than-expected financial results. Will the stock continue its strong momentum in 2025?

CrowdStrike revenue growth 

CrowdStrike, a popular cybersecurity company, is doing well, helped by the tailwinds of artificial intelligence (AI) and robust cybersecurity needs. Although the company was founded 13 years ago, its revenue growth has remained robust.

CrowdStrike is seeing double-digit revenue growth, and analysts expect the momentum will continue in the next few years. 

This momentum happened because of its AI-native cybersecurity platform, and the fact that cyber threats are growing annually. Cybersecurity losses rose to over $12.5 billion in 2023, a 21% increase from a year earlier. Analysts estimate that the cost of cybercrime will get to $639 billion in 2025. 

Cyber threats are also expected to get more complicated in the new era of AI and big data. As such, most companies with valuable customer data, are expected to continue boosting their investments in the next few years. 

CrowdStrike’s annual results provide more insight into its rapid growth. In January 2020, the company’s annual revenue was over $481 million, which has jumped to $3.7 billion in the TTM. 

This growth happened as the company added some of the largest companies as its clients. Target, Mercedes Benz, and Delta Air Lines are examples of firms using its solutions. 

These firms use its platform for endpoint security, exposure management, identity protection, and cloud security. Most importantly, CrowdStrike provides a single platform that unifies almost all security needs, as shown below.

CrowdStrike unique cybersecurity solutions

Third-quarter revenue growth

The most recent financial results showed that CrowdStrike’s revenue rose by 29% in the third quarter even after the outage. It made $1.01 billion, with $962 million of this coming from subscriptions. 

The company has achieved an annual recurring revenue growth of $4.02 billion, while its subscription gross margin grew to 78%.

Analysts are optimistic that the company will continue doing well in the next financial year. The average fourth-quarter revenue by 41 analysts is that its fourth-quarter revenue growth will be 22.40% to $1.03 billion. The final revenue figure will likely be better than these estimates, as it has been in the past.

The next quarter’s revenue is expected to be $1.1 billion, a 20% increase from the same quarter. Also, analysts predict that CrowdStrike’s annual revenue will be $3.93 billion and $4.77 billion in 2024 and 2025.

These numbers explain why CrowdStrike trades at a high valuation of over $87 billion. This valuation gives it a forward non-GAAP P/E ratio of 94.30, much higher than a company like NVIDIA that is seeing faster revenue growth. 

However, the rule-of-40 metric shows that CRWD stock is not overvalued. The company’s revenue growth is 29%, and its leveraged free cash flow margin is 32%, giving it a rule-of-40 figure of 61%, comfortably above the 40 level.

Read more: CrowdStrike stock forecast: will it hit its ATH after earnings?

CrowdStrike stock price analysis

The CrowdStrike share price faces a substantial technical risk that could push it lower in 2025. On the weekly chart, the stock has formed a double-top pattern near $400 whose neckline is at $200. This is one of the most bearish patterns in technical analysis.

Therefore, there is a risk that the CRWD share price will suffer a strong reversal in 2025 unless bulls push it above $400. The double-top pattern means that the stock may drop to the neckline at $200.

This view is in line with the broader market forecast we provided on Friday. In it, we estimated that 2025 will be a tough year for the market as bond yields surge.

The post CrowdStrike stock could dive in 2025 despite strong fundamentals appeared first on Invezz

Previous Post

These 2 European semiconductor stocks are Bernstein’s top picks for 2025

Next Post

LAZR stock forecast: what to expect in 2025 for lidar tech

admin

admin

Next Post
LAZR stock forecast: what to expect in 2025 for lidar tech

LAZR stock forecast: what to expect in 2025 for lidar tech

Trending News

Golden Globes 2025: the big money behind Hollywood’s night of glitz and glamour

Golden Globes 2025: the big money behind Hollywood’s night of glitz and glamour

January 6, 2025
Temu reacts to Trump tariffs: will it keep prices low for US shoppers?

Temu reacts to Trump tariffs: will it keep prices low for US shoppers?

February 6, 2025
China to issue record special treasury bonds in 2025 to bolster economy

China to issue record special treasury bonds in 2025 to bolster economy

December 24, 2024
Subscribe to Insightful Word


    Recent News

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    June 26, 2025
    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    June 26, 2025
    S&P 500 nears record high as Wall Street opens higher amid tech momentum

    S&P 500 nears record high as Wall Street opens higher amid tech momentum

    June 26, 2025
    Galaxy Digital launches $175 million fund to back DeFi and stablecoin startups

    Galaxy Digital launches $175 million fund to back DeFi and stablecoin startups

    June 26, 2025

    Recent News

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    June 26, 2025
    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    June 26, 2025

    Latest News

    • S&P 500 nears record high despite headwinds: key drivers behind the surprise rally
    • Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high
    • S&P 500 nears record high as Wall Street opens higher amid tech momentum

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.