I'm Buying CrowdStrike Before Earnings As The Market Is Underestimating The Growth Story (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• Multiple channel checks point to higher-than-expected demand that consensus estimates don't seem to be pricing in. So I expect a revenue result and guidance beat in Q1 results.
• A 5% cut in headcounts can provide a 380bps margin tailwind., but stock-based compensation remains a key risk.
• CRWD is not cheap and there is some valuation risk. However, I am wary of avoiding a stock purely due to high valuations when the growth and margin momentum are accelerating.
• CRWD vs. SPX500 is breaking out to the upside on the monthly technical charts.
• A key risk monitorable is whether the margin benefits would be eaten up by stock-based compensation; a perennial concern I've had on CrowdStrike.

Read the full article here.