CrowdStrike Earnings: Endpoint Security Leader Puts Out Strong Results Ahead of Our Estimates

We lift our fair value estimate for narrow-moat CrowdStrike to $163 from $156 after the firm reported strong financial results and guidance ahead of our prior estimates. While general turbulence continued to affect the firm’s near-term financials, we believe CrowdStrike’s growing addressable market, sticky products, and wide range of solutions are all positive indicators for the firm’s long-term potential. We believe in a cybersecurity landscape in which nefarious actors are increasingly leveraging artificial intelligence/machine learning tools to exploit security vulnerabilities in organizations, CrowdStrike’s Falcon platform is well-positioned to capitalize on increased demand for cybersecurity solutions. We believe investors were disappointed with some forward-looking metrics leading to a sharp selloff in CrowdStrike’s shares afterhours. We believe this selloff has created upside for investors looking to get high-quality SaaS/cybersecurity exposure.