4. CrowdStrike Holdings Inc.(NASDAQ:CRWD)
Number of Hedge Fund Investors: 69
Jim Cramer, reflecting on CrowdStrike Holdings Inc.(NASDAQ:CRWD)’s recent performance, acknowledges the company’s tumultuous period following a significant tech issue on July 19th, which led to global disruptions. Despite concerns that this incident might negatively impact their business, CrowdStrike Holdings Inc.(NASDAQ:CRWD) has recently reported strong sales, impressive earnings, and high customer retention.
“It’s been a crazy couple of months for Cramer favorite CrowdStrike, the cybersecurity company that made headlines for all the wrong reasons back on July 19th when a botched update caused widespread tech issues, shutting down millions of systems globally. There was a lot of speculation that these problems could hurt their business, but last night, CrowdStrike reported strong sales, excellent earnings, and terrific customer retention.
As a result, the stock jumped nearly 3% today and was up even more at one point. While it’s still down over 30% from last month’s all-time high, it has rebounded 35% off its recent lows, where I said it had bottomed out. Could this have more room to run?”
CrowdStrike Holdings Inc. (NASDAQ:CRWD) is a strong investment opportunity due to its impressive financial performance and leading position in the cybersecurity market. For fiscal Q2 2025, CrowdStrike Holdings Inc. (NASDAQ:CRWD) reported revenue of $964 million, exceeding expectations, and achieved a 32% year-over-year increase in annual recurring revenue (ARR), reaching $3.86 billion.
This growth highlights CrowdStrike Holdings Inc.(NASDAQ:CRWD)’s resilience and effective management, particularly given the temporary impact of the “Channel File 291 Incident” on its reputation, which has not disrupted its long-term growth. CrowdStrike Holdings Inc.(NASDAQ:CRWD)’s positive outlook is driven by its leadership in AI-powered cybersecurity solutions through the Falcon platform, which continues to see significant adoption. CrowdStrike Holdings Inc.(NASDAQ:CRWD)’s emphasis on cloud security, identity protection, and next-generation SIEM technologies positions it well for continued success in the expanding cybersecurity sector.
With a projected 25% revenue growth for Q3 2025 and a target to reach $10 billion in ARR by the end of fiscal year 2031, CrowdStrike Holdings Inc. (NASDAQ:CRWD)’s future growth prospects are strong. Customer loyalty remains high, and the Falcon Flex procurement vehicle has been notably successful, generating $700 million in deal value within a year. Despite challenges like longer sales cycles and rising operating expenses, CrowdStrike Holdings Inc. (NASDAQ:CRWD)’s ability to manage these issues while remaining profitable and growing its market presence supports a bullish investment outlook for its stock.
Carillon Eagle Mid Cap Growth Fund stated the following regarding CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its Q2 2024 investor letter:
“CrowdStrike Holdings, Inc. (NASDAQ:CRWD), a security software provider, reported strong earnings results, which stood in contrast to some competitors. Strength in endpoint security, cloud security, vulnerability management, and identity protection drove revenue growth and profitability ahead of expectations for the quarter and outlook. The cyber threat environment remains elevated, and it is likely that the rise of artificial intelligence (AI) will make it easier for criminals and threat actors to design and launch sophisticated attacks, increasing the need for CrowdStrike.”
