Should you buy CrowdStrike stock? (August 2024)

Published first at https://www.3minutebreakdowns.com
CrowdStrike stock analysis. Ticker: $CRWD

Crowdstrike stock has collapsed.

About two weeks ago the cybersecurity company updated its software but it reacted negatively with millions of Windows devices. There were chaotic scenes around the world and thousands of flights were canceled. It’s estimated that Fortune 500 companies alone (not including Microsoft) face losses of more than $5 billion.

But Crowdstrike investors are facing even bigger losses. The stock has now dropped 40% and its market value has fallen from 86 billion dollars to just 56 billion. The big question is whether this sell-off is an opportunity to buy the stock.

On the positive side, there’s no doubt that Crowdstrike is one of the best companies in the market. Revenue grew 54% in 2023, 36% last year and, before the latest debacle, management expected another year of 33% growth. In the latest quarter the company reported 3.7 billion of recurring revenue and best in class free cash flow margins of 35%.

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