Top 5 Growth Stocks in Cybersecurity

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

Revenue Growth Over the Past Year as of March 9: 58.29%

Number of Hedge Fund Holders: 66

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a provider of cloud-delivered protection across endpoints and cloud workloads, identity, and data. The company is based in Austin, Texas.

Taz Koujalgi at Wedbush holds an Outperform rating on CrowdStrike Holdings, Inc. (NASDAQ:CRWD) shares as of March 8.

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leader in the cybersecurity space. As of this March, its customers include about 556 of the Global 2000 and 15 of the top 20 US banks. The company’s market share in endpoint security software stood at 17.7% as of March 8.

Our hedge fund data for the fourth quarter shows 66 funds long CrowdStrike Holdings, Inc. (NASDAQ:CRWD). Their total stake value was $1.6 billion.

Baron Funds, an investment management company, mentioned CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its fourth-quarter 2022 investor letter. Here’s what the firm said:

“CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a market leading cloud-native cybersecurity vendor. Shares declined on the back of a weaker-than-expected earnings report, in which revenue beat Street expectations but net new annual recurring revenue (ARR) slightly missed consensus due to elongated sales cycles that impacted deals with small- and medium-sized businesses (SMB) and phased start dates with larger customers. For example, instead of 100,000 end-points starting on day 1, start 75,000 on day 1 and 25,000 six months later. For fuller context, in the fiscal third quarter, revenue grew 53%, ARR grew 54%, net new ARR was $198 million vs. expectations about $20 million higher, and the business generated 30% FCF margins. Accounting for the net new ARR miss, the company offered conservative initial guidance for fiscal year 2024 (ending January 2024), with ARR growth in the low 30s, subscription revenue growth in the low-to-mid 30s, and FCF margins around the 30% level. While this was a painful reset, CrowdStrike noted its SMB win rates had improved, enterprise win rates remained constant, its gross and net retention rates are at best-in-class levels, and its emerging products were experiencing rapid adoption. Despite short-term weakness, Morgan Stanley’s fourth quarter CIO survey showed security software projects remained the top CIO priority, and our research continues to indicate that CrowdStrike is one of the few true platforms in the security space.”