stock market


CrowdStrike Holdings, Inc. (NASDAQ:CRWD) has been making waves in the market, with its stock price up 32% over the past three years, outperforming the market return of 22%. While recent market trends have impacted its three-year return, it’s worth examining the underlying business to determine if its gains have been in alignment.


Revenue growth is a key factor to consider for a company that hasn’t been profitable. Fast revenue growth often leads to fast profit growth. CrowdStrike Holdings has seen impressive revenue growth, averaging 46% annually over the last three years. This is well above the average for pre-profit companies. Although the compound gain of 10% per year over three years is good, it may not fully reflect the strong revenue growth.

Insiders have been buying shares in CrowdStrike Holdings, which is a positive sign. However, it’s important to note that earnings and revenue growth trends are typically considered more meaningful indicators of a company’s performance. To get a more comprehensive understanding, investors can refer to analyst forecasts.

While CrowdStrike Holdings shareholders experienced a loss of 21% over the past year, it’s important to focus on the long-term perspective. Over a three-year period, the company has delivered average total returns of 10% per year. Sometimes, a weak period for a high-quality stock can present an opportunity, as long as the fundamentals remain strong.

It’s worth noting that CrowdStrike Holdings is showing 2 warning signs, as identified in our investment analysis. Investors should be aware of these before making any decisions.

In conclusion, CrowdStrike Holdings’ strong revenue growth and long-term average returns suggest it could be an interesting investment. However, it’s crucial for investors to conduct thorough research and consider all relevant factors before making any investment decisions.

– Market performance figures referenced in this article reflect the market weighted average returns of stocks currently trading on American exchanges.
– Simply Wall St’s analysis is based on historical data and analyst forecasts, using an unbiased methodology. Their articles are not intended to be financial advice.

The article based on the news link

Leave a Comment