This rapidly growing cybersecurity business announced earnings after the close on Tuesday. The results were better than the street’s already lofty expectations, plus the company raised forward guidance (both good things). This brief note is an update and follow up on our previous report, and a reminder to readers on how we feel about investing in this stock, at this time.
CrowdStrike: This “Ain’t” Their First Rodeo
CrowdStrike founder and CEO, George Kurtz, has founded and led multiple successful cybersecurity businesses, and he knows the drill. Specifically, CrowdStrike is a high-margin Software-as-a-Service company with highly attractive recurring revenues that continue to grow rapidly in a large (and expanding) total addressable market (cybersecurity). What’s more, despite the continuing rapid growth, the valuation has come down, thereby making the shares even more compelling to some investors. In this report we share our opinion on whether CrowdStrike is worth considering for investment at these levels (valuation), or if it’s just another overhyped growth stock that is being valued too much on a euphoric narrative and not enough on its underlying fundamentals.
Income Via Growth: A Post-Pandemic Cybersecurity Winner
From time to time, we like to share highly attractive “income-via-growth” opportunities, and this is one of those times. This article is about a stock that pays zero dividend, but can provide a lot of spending cash to investors through long-term price appreciation. We believe it’s a good idea to sprinkle a few of these types of stocks into your portfolio, but if you are looking strictly for high dividend stocks, this article is not for you.