Jim Cramer on Taiwan Semiconductor, Netflix, and Other Stocks

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

Number of Hedge Fund Holders: 69

Cramer recently mentioned that his Charitable Trust initiated a position in CrowdStrike Holdings, Inc. (NASDAQ:CRWD) and said:

“… I chose technology and financials. The former, CrowdStrike, is a high flyer that sells for 85 times earnings. That’s supposedly the kiss of death if you’re worried about what you’ll hear from the Fed heads when they come on television and speak at some austere civic organization…”

CrowdStrike Holdings (NASDAQ:CRWD) offers cybersecurity solutions, serving clients both domestically and globally. The company’s unified platform provides comprehensive, cloud-based protection for endpoints, cloud workloads, identity, and data. In July, a significant IT outage because of a glitch within its software led to considerable disruption across various sectors. However, the company’s swift response played a crucial role in managing the situation.

The company took immediate responsibility and quickly rolled out a fix. The proactive approach demonstrated a commitment to maintaining the integrity of its software and prioritizing long-term reputation over short-term consequences.

At the Fal.Con conference in September, CEO George Kurtz highlighted CrowdStrike Holdings’ (NASDAQ:CRWD) resilience in the wake of the incident. He reported a remarkable 98% gross spending retention rate. Furthermore, he noted that the company’s pipeline generation had rebounded to levels seen prior to the outage, suggesting that the incident did not significantly hinder its business operations. Furthermore, the company’s leadership has previously stated an ambitious target of reaching $10 billion in annual recurring revenue in a few years.