CrowdStrike – Potential Cybersecurity Google

CrowdStrike is a leader in the field of endpoint protection using artificial intelligence (AI).

We will show Russ about the company and in more detail.

CrowdStrike Holdings is an American cybersecurity company. It was founded in 2009 by George Kurtzov, Dmitry Alperovich, Gregg Marston.

The company went public in 2019 and participated in the investigation of several well-known cyberattacks, for example, the hacking of the US Democratic National Committee servers.

On August 24, 2021, were included CrowdStrike shares in the NASDAQ 100 index. The company’s capitalization is about $ 63 billion.

CrowdStrike is the leader in AI endpoint security. The company is already becoming a kind of Google or Facebook in the cybersecurity segment. It is one of the leading contractors of the CIA and the US military. The most famous clients in the private sector are Credit Suisse, Bank of Qatar, Goldman Sachs, Sony, Virgin Hyperloop One, Globe Telecom, Mercedes-AMG.

The Falcon platform developed by the company contains 19 cloud modules. Among them: security and vulnerability management, identity protection module, IT operations management module and others.

The platform integrates two patented technologies:

• Lightweight Agent
• Threat Graph

Practical solutions provide using AI.

Financial Condition

CrowdStrike generates most of its revenue through subscriptions (SaaS model) to its Falcon cloud platform. Revenue increased by 71% YoY to $ 337 million in the second quarter. ARR growth + 70% YoY ($ 1.34 billion). The margin was 76%.

Earnings per share on Non-GAAP rose from $ 0.03 to $ 0.11. Free cash flow increased by 127% y / y from $ 32.4 million to $ 73.6 million. The results were better than analysts’ forecasts.

The number of new subscriptions for the II quarter increased by 1660 units. As a result, the total number of available subscriptions to the company’s products is already 13,080 (+ 81% YoY).

In almost all metrics, CrowdStrike has shown substantial growth from quarter to quarter since its IPO.

Forecasts

In the third quarter, CrowdStrike expects revenues in the range of $ 358-365.3 million. The firm increased its forecast for the year from $ 1.347-1.365 billion to $ 1.391-1.409 billion. 41 to $ 0.43-0.49.

CrowdStrike predicts that the number of subscriptions to its platform in the next five years will exceed 100,000. In my opinion, the cybersecurity sector is one of the most promising for the next 5-10 years. According to experts, the global address market will grow to $ 345 billion by 2026.

On August 26, President Biden held a prominent summit with major US corporations and banks. It announced that soon, US companies would spend vast amounts of money on cybersecurity. Microsoft alone pledges $ 20 billion over the next five years.

What options investors have?

It is possible that in 10 years, cybersecurity budgets can match defence budgets, and companies in the sector will begin to turn from minor players into giants. The market size by the end of 2021 will already reach almost a third of the spending that the US government will allocate for defence ($ 740 billion).

Despite growing more than 300% over the past year and being overbought in terms of technical analysis, can add CrowdStrike stock to a long-term portfolio. Of course, stores will also fall in the event of a technical correction or a market crash, but in the long term, they may well become one of the best long-term investments in the next 5-7 years.

CrowdStrike shares are fundamentally similar to early Google or Salesforce.

Analysts’ consensus forecast for CrowdStrike shares is $ 320 per share, up 20% from the current price.

The nearest youngth competitor company CrowdStrike is SentinelOne company.
Since the recommendation to buy SentinelOne, the quotes have increased by 40%.

SentinelOne company grew five times.

Cybersecurity is one of the critical issues in the world at the moment. The number of news stories about cybercrimes that disrupt people’s work and life will only grow as society transitions to a new way of life. Therefore, not considering cybersecurity stocks for long-term investment can be a strategic mistake.

As a result of studying Daniel Loeb’s portfolio, it recommends paying attention to one of these promising companies – SentinelOne and purchase securities in the portfolio for long-term investment.

Since the start of the week, shares have been up 15%.

AI on guard for cybersecurity

SentinelOne is a cybersecurity startup. The company was founded in 2013 in Israel by Tomer Weingarten and Almog Cohen. The country now considers being the leader in the field of cybersecurity. In June 2021, SentinelOne held an IPO. On the same day, the company’s shares became available for trading on the St. Petersburg Stock Exchange under the ticker S.

The main product of SentinelOne is the Singularity platform, designed for autonomous detection and prevention of cyberattacks using AI. It is the first solution in the industry to seamlessly deliver differentiated endpoint protection (Next-Generation Antivirus), Attack Detection and Response (EDR), IoT Security, Cloud Protection, and Day-to-Day IT functionality by combining multiple existing technologies into one solution.

SentinelOne offers resource-efficient standalone agents “Sentinel” for Windows, Mac, Linux and Kubernetes and supports various form factors including physical, virtual, VDI, enterprise data centre, hybrid and public clouds.

SentinelOne has other cybersecurity solutions as well. For example, WatchTower proactively warns of severe threats and communicates the risks they may pose. At the same time, Vigilance Respond Pro sorts threats by hazard type, conducts cause-effect analysis and proposes solutions to prevent them.

The company’s clients already include Aston Martin, TGI Fridays, Norwegian Airlines, the government of Montana, Estee Lauder, Blizzard, Electronic Arts, Wells Fargo and about 4,000 other clients.

Four out of 10 Fortune 10 companies have chosen SentinelOne from many competing endpoint security solutions.

SentinelOne’s capitalization is about $ 15 billion.

Financial Condition and Prospects

The company has yet to officially report its financial performance for the second quarter on September 8 for the first time. However, the company announced an increase in revenue for the first quarter of 2021 to $ 37 million – + 198% YoY before the IPO.

ARR (the amount of regular income from subscriptions for a calendar year) increased by 116% YoY to $ 161 million. This indicator has been growing steadily over the past two years. In addition, the number of customers with subscriptions over $ 100,000 increased by 120% YoY. However, free cash flow is still negative – -$ 32.5 million.

According to preliminary forecasts, experts estimate the target market for the cybersecurity sector at $ 300 billion by 2027. I do not exclude that these are very modest estimates. Nevertheless, cybersecurity budgets may equal defence budgets in a few years, and companies will evolve from minor players into market giants.

On August 26, President Biden held a major summit with major US corporations and banks. It announced that soon, US companies would spend vast amounts of money on cybersecurity. Microsoft alone pledges $ 20 billion over the next five years.

Will the growth continues?

SentinelOne has yet to face stiff competition from other up-and-coming companies such as CrowdStrike and Palo Alto Networks. If the company can become one of the leaders in the market, then, given the importance of the industry, it can quickly achieve a capitalization of more than $ 100 billion. In general, the securities of all three companies can consider the long-term investment as a bet on the sector’s growth.

The deeper implementation of IoT infrastructure in everyday life will make the cybersecurity sector as essential and significant as chips or smartphones. If you are looking for future leaders in capitalization, then it is precisely in this direction.

It should consider investments in SentinelOne securities almost like a venture. Still, thanks to promising technology and influential backers, the company may become a market leader.

A position opened on a recommendation earlier can be held and viewed as a long-term investment. Moreover, there are no signals for a price reversal from the point of view of the technical situation yet. So the securities may well continue to grow.

If were purchased the securities for speculative purposes, then the potential target may be in the range of $ 62–65.

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