CrowdStrike: Another Solid Quarter; Buy Opportunistically
~ After solid F1Q22 results, we reiterate our buy rating on CrowdStrike. We urge long-term investors to buy shares on weakness and existing shareholders to remain invested in the stock.
~ Elevated security spending, new customer additions and upsells into its install base, low churn, and displacement of legacy vendors will drive CrowdStrike revenue.
~ CrowdStrike will become a formidable competitor to Splunk with its Humio acquisition. CrowdStrike hinted on the call that it displaced Splunk at a major customer.
~ CrowdStrike reported another exceptional quarter beating all metrics and guided up. We expect CrowdStrike to remain a dominant security vendor in the near term.
~ CrowdStrike stock will remain expensive and volatile. Hence investors should be buying shares on weakness as when opportunities are presented.