CrowdStrike (CRWD) and AI

Investment Analysis Clubs Saul’s Investing Discussions
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As we know, CRWD is founded on AI, so that is nothing new, but they are rolling out some Generative AI overlays that could add lots of value to customers as we go forward. In addition, it has been beating Earnings estimates recently and expected to increase earnings 84% in 2024 and 24% in 2025.

Full article…
https://www.investors.com/research/ibd-stock-of-the-day/crwd-stock-why-cybersecurity-player-crowdstrike-is-seen-as-ai-winner/

Snippets.

At its Fal.Con customer conference in Las Vegas on Sept. 21, CrowdStrike said it aims to reach $10 billion in annual recurring revenue, or ARR, in 5 to 7 years, up from $2.9 billion this year. It also updated analysts on the rollout of Charlotte AI, the generative AI-powered cybersecurity platform it first announced this spring.
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“Benefits include faster remediation times, fewer man hours, and potentially less staffing required for Security Ops roles.”
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Goldman Sachs report…“CrowdStrike continues to build out one of the more complete cloud security portfolios vs. peers,” the report said. “This includes Cloud Workload Protection (agent-based technology for monitoring container activity), Cloud Security Posture Management (for checking cloud environments to make sure they’re configured correctly).”
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Oct: 2: a Morgan Stanley report identified CrowdStrike as a likely beneficiary of generative artificial intelligence. Further, the report said CrowdStrike “has quickly risen to market leadership as a next-gen SaaS (software as a service) security platform. Continued share gain in the core endpoint market, in addition to growing uptake of emerging modules (such as identity protection and cloud workload protection) and favorable AI positioning should help to sustain 20%+ topline longer term.”

I am long and will get longer at next market correction, which may be now.

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I’m all for $CRWD and have held for a long time, but Beth Kindig recently wrote a big bull opinion, and she is the Mad Money Cramer of tech stocks to me, contrarian indicator for sure.

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I was wondering about the same … Beth has record of being early but right (FB, ROKU, NVDA) on a major theme…

I don’t subscribe to Beth premium letter, so I am trying to guess…

Of course modern cyber security platforms like CrowdStrike and ZScaler use AI but what I started to realize is that bad actors use AI to increase frequency and sophistication of attacks which probably pushes enterprises to make switch to modern cyber security platform more urgent

So a long tail of enterprises who are still on old platforms from FTNT, checkpoint, trend micro you name it - they’re probably 30 or 40 of those suppliers including large ones like McAfee, and symantec - who are not on modern AI based platforms… so all those customers who have been slow to move to modern platforms like CRWD, ZS or even Palo Alto for that matter have a real need to make that switch because of bad actors using AI

Add to this with another war started and Cyber makes sense to have high % of portfolio right now

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