Jim Cramer Looked At These 7 Stocks Recently

1. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)

Number of Hedge Fund Holders: 74

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a cybersecurity firm known for its sophisticated Falcon platform, which provides a variety of endpoint security solutions. When a caller asked Cramer about the company, he said, “… that one’s going higher. We’re going to have the anniversary of the July outage, don’t forget, and then it’s gonna fly.”

In 2024, the company faced a significant setback last summer when a botched update caused a global outage affecting Windows computers and servers. As a result of the incident, the stock experienced a sharp decline. However, according to PYMNTS, CrowdStrike (NASDAQ:CRWD) CEO, George Kurtz, recently commented that the company successfully turned a challenging situation into an opportunity. PYMNTS noted that the company has fully recovered from that loss and has seen its stock now surpass its value prior to the outage, as reported by the Financial Times. From July 19, 2024, the stock has gained over 20%.

Kurtz explained that CrowdStrike (NASDAQ:CRWD) managed to transform this crisis into a competitive advantage, maintaining customer trust throughout the process. He shared that customers have continued their relationships with the company, with one client even expressing that “broken bones heal stronger” and they didn’t expect such an issue to occur again. Kurtz contrasted this with competitors, who haven’t faced a similar crisis and might pose a higher risk to customers.

While we acknowledge the potential of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CRWD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.