I Was Dead Wrong On CrowdStrike And AI But Now I'm Buying In (Archive)
Revised AI view, stronger Falcon economics, and bullish charts justify buying richly valued CrowdStrike.
This 5-Minute Pitch was originally published on Seeking Alpha. It is shared here to showcase my work and track record. I also publish full 5-Minute Pitches on this site. This will be behind a paywall, accessible to Hunter Tier members.
Elevator Pitch
- CrowdStrike benefits from AI agents exposing vulnerabilities while its Falcon platform still handles mission-critical, always-on security governance that current autonomous agents are not suited to replace.
- New AI-driven products like Falcon OverWatch and Next-Gen SIEM should lift multi-module adoption, cross-sell, pricing power, and net retention over the next several quarters.
- Stock-based compensation remains above 20% of revenue, but the CEO’s performance share units tied to S&P 500 outperformance support long-term alignment with shareholders.
- CRWD needs about 35% EPS CAGR over 7 years, above current consensus EPS growth rates. This makes valuation a key risk despite strong fundamentals.
- Technicals show an ongoing uptrend with a recent bullish engulfing month breaking resistance, which could indicate further upside in the share price.
Read the full article here.
