CrowdStrike Holdings (CRWD) Stock Forecast: Will CRWD Surpass $450 by 2024?

 

Texas-headquartered CrowdStrike (NASDAQ: CRWD) pioneers in AI-driven security endpoint solutions offered as Software-as-a-Service. Once, I envisioned its stock soaring to $300; today, I envision even greater heights, inviting investors to capitalize on unprecedented returns in the latter half of 2024. An intriguing tidbit, CrowdStrike shares soared 24% in June, surpassing even Nvidia’s (NASDAQ: NVDA) 13% surge. Its loyal shareholders are riding a wave of success, and this rally isn’t poised to fade in July, despite skepticism from a Wall Street pundit. Embark on this lucrative journey with CrowdStrike as your trusted cybersecurity partner.

 

• CrowdStrike Stock: Is It Really Worth the Price?
• CrowdStrike Downgrade: Key Insights Explained
• CrowdStrike Stock Growth Outlook Despite Valuation Worries

 

 

 

 

 

CrowdStrike Stock: Is It Really Worth the Price?

 

 

While CrowdStrike’s price-to-earnings ratio of 729.9x may initially suggest the stock is not undervalued, a deeper analysis reveals a compelling investment opportunity. The company’s inclusion in the esteemed S&P 500 index means it will be a part of numerous index-tracking funds, potentially leading to significant capital inflows. Furthermore, CrowdStrike’s strategic partnerships and expansion plans underscore its robust growth prospects.

 

Just recently, CrowdStrike surpassed $1 billion in sales with a single partnership, highlighting its ability to generate substantial revenue through collaborations. Specifically, its collaboration with IT specialist CDW (NASDAQ:CDW) has resulted in worldwide sales of AI-enhanced cybersecurity solutions. This partnership alone demonstrates CrowdStrike’s market penetration and customer base.

 

Moreover, CrowdStrike is expanding its presence in Latin America by teaming up with distributors to commercialize its Falcon cybersecurity platform. This move is timely, as the company has observed a rise in e-crime in the region. By providing robust cybersecurity solutions, CrowdStrike has the potential to generate significant revenue in this growing market.

 

 

 

 

 

 

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CrowdStrike Downgrade: Key Insights Explained

 

 

Despite CrowdStrike’s promising growth prospects, marked by a 33% year-over-year revenue increase to $921 million in fiscal 2025’s first quarter and a transition from GAAP-measured earnings loss to income, Piper Sandler analysts led by Rob Owens recently downgraded the stock. Their rationale revolves around the company’s high valuation multiple, which has propelled shares to surpass the revenue multiples of any other public software company with a market cap above $75 billion.

 

However, the potential for CrowdStrike’s revenue growth and expansion in Latin America remains compelling, while its inclusion in the S&P 500 index will attract index-fund investments. Piper Sandler analysts themselves recognize CrowdStrike’s numerous incremental growth opportunities, emphasizing that these prospects, rather than any valuation metric, best reflect the company’s ongoing value proposition. While the downgrade may raise concerns, the underlying growth story for CrowdStrike remains robust.

 

 

 

 

CrowdStrike Stock Growth Outlook Despite Valuation Worries

 

In the current market landscape, CrowdStrike’s high P/E ratio may be a deterrent for some investors. However, those considering short-selling shares of this innovative cybersecurity firm should be warned: betting against CrowdStrike could prove costly in the second half of 2024. Despite potential valuation concerns, CrowdStrike’s stock is poised for continued growth, driven by investors’ confidence in the company’s ability to maintain its leading position in the cybersecurity industry.

 

When assessing the potential of CrowdStrike’s stock, it’s essential to look beyond the current valuation metrics. While the P/E ratio may appear elevated, it’s crucial to recognize that CrowdStrike is a rapidly growing company with significant potential for future expansion. The company’s cutting-edge technology and robust customer base have positioned it as a leader in the cybersecurity market, and its stock price reflects this strong market position.

 

Furthermore, investors should take into account the overall trend in the cybersecurity industry. As the digital world continues to expand, the demand for effective cybersecurity solutions is also increasing. CrowdStrike is well-positioned to capitalize on this trend, as it continues to innovate and expand its product offerings. This positive outlook for the industry and the company’s leading position within it provide strong tailwinds for CrowdStrike’s stock price.

 

In addition to its robust business model and growth prospects, CrowdStrike also benefits from a favorable macroeconomic environment. The current low-interest rate environment has reduced the cost of capital for companies, enabling them to invest more in growth initiatives. As a result, CrowdStrike is able to invest more in research and development, sales and marketing, and other areas that will drive future growth.

 

Given these factors, investors should not be deterred by CrowdStrike’s current valuation concerns. Instead, they should recognize the company’s strong business model, growth prospects, and favorable industry trends. Adding CrowdStrike shares to a portfolio now could position investors to reap significant rewards in the NEAR term and beyond.

 

It’s worth noting that David Moadel, a respected financial analyst and commentator, is bullish on CrowdStrike’s stock. He believes that investors who add this cybersecurity leader to their portfolios will be rewarded with strong returns in the coming years. With a target price of $450 in the near term and much higher prices down the line, CrowdStrike represents a compelling investment opportunity that investors should not miss.

 

Despite lingering valuation concerns surrounding CrowdStrike’s P/E ratio, investors should steer clear of short-selling the stock. Betting against CrowdStrike in 2024’s second half could be a costly mistake, as the company’s stock is poised for further gains. The market’s perception of CrowdStrike’s growth potential, regardless of whether it has surpassed Owens’ $400 price target, remains a significant driver of its stock price. Don’t be swayed by skeptics; add CrowdStrike shares to your portfolio and anticipate reaching $450 in the near term, with even higher prices on the horizon.

 

As an established writer and analyst, David Moadel has contributed valuable insights to various financial platforms, including Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and InvestorPlace.com. Additionally, he serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets. Therefore, his views on CrowdStrike’s future prospects should be taken seriously by investors seeking to capitalize on the company’s growth potential. It’s important to note that, at the time of publication, neither David Moadel nor the responsible editor had any direct or indirect positions in the securities mentioned in this article. The opinions expressed herein are solely those of the writer and are subject to InvestorPlace.com’s Publishing Guidelines.

 

 

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