Lately I have a nagging bad feeling about the CrowdStrike narrative.
Before I start I want to say - I’m defensive by nature, always liked to play goalie in sports and tend to overrate the dangers of life. So please take this with that in mind.
I notice that…
I am seeing Sentinel One mentioned more often in articles on cyber security/CRWD.
CEO George Kurtz is well aware of them, the two companies are trading barbs - and CrowdStrike even has a page dedicated to detailing why they are the superior offering…
I’m sorry I don’t have too much time to document all I’d like here but I had read an article where the Sentinel One COO or CFO claim they were winning more business from CrowdStrike lately.
Sentinel One’s CEO is Israeli and forgive the absurdly generalist take but these guys are warriors and it seems he’s rallied top guys from Cylance - who was once CrowdStrike’s toughest competitor, as the company was formed by Kurtz’s ex-best friend.
Cylance was acquired by Blackberry and from what I can tell - essentially became irrelevant right after that.
A big part of the overall narrative from Kurtz has been that the competitive landscape is laughable. I think part of that was the death of Cylance. But essentially Cylance has been re-born with better leadership and a strong product. All the sites I could find give Sentinel One’s product rave reviews. The company plans to IPO shortly. And will merit serious consideration as the tailwinds for security are downright hurricanish. (It’s a word now).
Also, on Sentinel One, as our board’s resident cool-factor guy - the name is badass.
My concern is that CrowdStrike is the largest position I have ever had and I know it’s a huge position for many of you as well. Should they come out with strong earnings but note in the call that their outlook is tempered by more intense competition the stock could get shellacked. It’s about 28% off it’s ATH and to be honest, I’d have liked to see our top dogg hold up better than others during this unconscionable stretch of wet towel snaps we’re receiving on our collective heinies.
Bottom line - I’m not saying that CrowdStrike is facing any sort of existential threat and let’s face it, for our companies to excel they must ward off tough competition. Zoom has their work cut out for them vs. Microsoft and Google among others, and one can argue that it’s GOOD for our companies to be pushed to excel. The cybersecurity industry is hyper-competitive and uber macho so Sentinel One riling Kurtz et al can actually be a strong positive. But if it’s a little harder for CrowdStrike to Pac Man up every company in sight I figured that’s worth watching.
Thanks in advance for any input on this - and again note, I’m not throwing FUD, don’t mean to create drama, I’m not selling, but am considering trimming a bit. Would love your thoughts especially from any techies who may have strong reasons to be believe CRWD has the superior offering, or feel Sentinel One is old news and that my concerns are overblown, if not downright flatulent.