Since the artificial intelligence (AI) frenzy began in 2023, semiconductor giant Nvidia (NVDA) has emerged as the clear winner. The stock has gained an eye-catching 753% in the last two years, and barreled into the mid-week holiday by knocking Microsoft (MSFT) out of its top spot as the most valuable publicly traded company in the world.
While many investors may believe they’ve missed out on this extraordinary stock, numerous other AI stocks have the potential to be long-term winners. One of those is cybersecurity company Crowdstrike (CRWD), which provides cloud-native endpoint security solutions.
With increasing digitization, cyber threats have also been on the rise, necessitating protection. Ever since its initial public offering (IPO) in 2019, Crowdstrike’s stock has shown robust growth, reflecting investor confidence in its business model and market potential in the cybersecurity space.
CRWD stock has risen by 471.7% over the last five years. Strong revenue growth and expanding market share have driven the stock price up. Following the footsteps of historical tech giants, Crowdstrike’s revenue has climbed significantly, instilling further investor confidence.
Valued at a market cap of $95 billion, the stock has gained 52.5% year-to-date, easily outperforming the broader market.
Crowdstrike’s Growth is Undeniably Impressive
Recently, Crowdstrike reported another blowout quarter, exhibiting a tremendous 33% year-on-year revenue growth. The company’s subscription model has proven highly successful, with a rapidly expanding customer base that generates recurring revenue, positioning them well for sustained success in the AI industry.
The market has warmly received the company’s AI-powered Falcon platform, attributing to its competitive edge and ability to address significant cybersecurity challenges effectively.
While initially prioritizing growth over profitability, Crowdstrike’s consistent profits and free cash flow in recent quarters have improved investor confidence in the company, reinforcing its solid foundation for future growth.
The Future Looks Bright For Crowdstrike
Crowdstrike’s proactive approach to expanding market reach and product capabilities through strategic partnerships has yielded positive results. Partnerships with major entities like Amazon (AMZN), Nvidia, and Alphabet have solidified Crowdstrike’s position in the market, showcasing its potential for sustained growth.
Management’s optimistic revenue and earnings projections for the upcoming fiscal years mirror the increasing demand for cybersecurity measures and the company’s AI-powered platform, underlining a promising future for Crowdstrike.
As the global cybersecurity market continues to grow, Crowdstrike remains well-positioned to capitalize on this trend, offering a stable business model and robust financial standing to investors.
What Does Wall Street Say About Crowdstrike Stock?
Analysts on Wall Street are bullish on Crowdstrike stock, with a majority rating it as a “strong buy.” The ongoing rally in the stock indicates a positive outlook, with analysts projecting further upside potential in the next 12 months.
Despite trading at a premium valuation, Crowdstrike’s leading position in the cybersecurity market and the escalating demand for cybersecurity measures make it an attractive long-term investment, with the potential to deliver substantial returns to investors.
The Bottom Line on CRWD Stock
Crowdstrike’s current valuation may seem high, but given its strong foothold in the cybersecurity market and the escalating global cybercrime costs, investing in Crowdstrike presents a compelling opportunity for long-term investors seeking growth and stability in the AI sector.
With global cybercrime costs projected to reach trillions by 2028, Crowdstrike’s innovative AI solutions and strong financial position position it as an essential player in the evolving landscape of cybersecurity, making it a valuable asset for long-term investors.