Technology / Cybersecurity
Cloud-native cybersecurity platform leader specialising in endpoint protection and threat intelligence.
View forensic reportCrowdStrike at $96 billion market cap versus Cloudflare at $59 billion — both are growing revenue at 25%+, both are unprofitable on a GAAP basis, and both claim to be the platform that wins cybersecurity. One is overvalued.
Customer churn from the July 2024 outage has been negligible, but at 80x earnings and 15x revenue, CrowdStrike is priced for perfection again.
The stock has recovered to near all-time highs, but $1-3B in potential litigation liability and Microsoft's kernel access restrictions create downside risk the market isn't pricing at 60x forward earnings.
With $4 billion in ARR, 78% gross margins, 120%+ net retention, and 75% of customers on 5+ modules, CrowdStrike is winning the cybersecurity platform consolidation war.
CRWD trades at 477x trailing earnings with a market cap of $100 billion. The product is best-in-class, but the price assumes a decade of flawless execution in one of the most competitive markets in tech.