Is Now A Good Time To Buy Crowdstrike After Their Recent Disaster?

Daisy M

1 year ago

We are sure that we are all aware of the <a href="https&colon;//medusamagazine&period;com/microsofts-domination-in-2017/">Microsoft</a> outage caused by an update being rolled out for Crowdstrike&period; However, with the price depleting significantly and an upcoming earnings report in just over a month, investors are intrigued about what Q2 earnings have in store for CrowdStrike&period; Is it a worthy buy&quest; &NewLine;&nbsp&semi;&NewLine;Before we dive into whether or not it is a good time for investors to invest in CrowdStrike, let&&num;8217&semi;s take a look at Q1’s previous earnings report as well as how it is expected to be planned out&period;&NewLine;&nbsp&semi;&NewLine;<h2>What Happened In Q1&quest; </h2>&NewLine;The Q1 earnings report was very impressive, with its share price increasing by 12&percnt; and since then, it has consistently improved up until the infamous update&period; Q1 beat estimates and you can probably assume that the same could occur again&period; Analysts are likely estimating that this quarter won’t perform as well as last quarter because of the costs of the Falcon update&period; &NewLine;&nbsp&semi;&NewLine;In the first quarter, CrowdStrike’s earnings increased by 63&percnt;&period; Revenue, including acquisitions, increased by 33&percnt;&period; Q1 was a great period for Crowdstrike because of its unique cloud platform, which is above the rest&period;&NewLine;&nbsp&semi;&NewLine;<h2>What Happened To The Share Price After IT Outage</h2>&NewLine;Since the outage, a lot of discussion has surrounded <a href="https&colon;//www&period;investing&period;com/news/stock-market-news/crowdstrike-shares-set-to-extend-losses-as-outage-effects-linger-3528900">CrowdStrike and its value has decreased significantly</a>&period; Despite their success after the Q1 earnings and the share price increasing by 28&percnt; since the Q1 report, it has decreased significantly with a share value of 293, below the Q1 earnings report&period; &NewLine;&nbsp&semi;&NewLine;Those investors who have invested in the stock from Q1 to now have taken a massive hit to their investment&semi; however, investors and experts believe that this actually won’t backfire on CrowdStrike as much as people initially thought&period; &NewLine;&nbsp&semi;&NewLine;Thousands of businesses worldwide have been affected by this outage and it has no doubt affected their operations and revenue&period; However, it will be difficult for these businesses to seek compensation against CrowdStrike&period; Firstly, due to it being so short, it is difficult for companies to work out how much is lost&period; &NewLine;&nbsp&semi;&NewLine;Another factor is that a business won’t be able to prove that their loss of earnings is caused by the outage&period; This is a major case for countering any compensation claims&period; Plus, the longevity wasn’t that long to cripple company finances&period; Not to mention that CrowdStrike is likely covered by insurance&period; &NewLine;&nbsp&semi;&NewLine;The airline industry was affected the most by the outage and are still feeling the effects&period; Even then, passengers cannot claim either because it depends on why they are travelling and where they are travelling&period; Airlines will likely decline the compensation claims because these were extraordinary circumstances that were out of the airline&&num;8217&semi;s hands&period;&NewLine;&nbsp&semi;&NewLine;<h2>Should You Buy After The Decrease&quest;</h2>&NewLine;Many people see this as a golden opportunity for investors and with it recording new lows in the last three months, it is certainly worth considering&period; &NewLine;&nbsp&semi;&NewLine;There is no argument that CrowdStrike is the leader in its sector&period; It is Google of the search engine world and Apple of the mobile device world&period; It is the go-to that most people use because it is a premium service that offers stability&period; Revenue for this company in the last three years has grown significantly, increasing by 250&percnt;, which is a lot in comparison to both Fortinet and Palo Alto Networks, which have grown by 100&percnt;&period; &NewLine;&nbsp&semi;&NewLine;There is one clear reason why CrowdStrike is levels above the rest and it isn’t just for its firewall protection&period; CrowdStrikes also offers cloud monitoring and detection services to help prevent any cyber-attacks&period; Additionally, CrowdStrike continues to monitor those that bypass security to help reduce any damage&period;&NewLine;&nbsp&semi;&NewLine;There’s no doubt that CrowdStrike is one of the leading companies in the industry and certainly one of the smartest&period; The reason they stay above the rest is because they collect information from their customers&period; This is so they can continuously improve their systems, which allows them to offer the best level of security&period; &NewLine;&nbsp&semi;&NewLine;It&&num;8217&semi;s no surprise that CrowdStrike is in the S&amp&semi;P 500 because of its success and investors see this as a perfect opportunity to invest in the stock&period; Nearly reaching the lows of how it started this year, there is no doubt that CrowdStrike is now undervalued&period;&NewLine;&nbsp&semi;&NewLine;<h2>Other Stocks To Consider With Cyber Security</h2>&NewLine;As investors, it is important to have a well-diverse portfolio and if CrowdStrike is a stock that is letting you down currently, then you may want to consider other stocks in this sector&period; &NewLine;&nbsp&semi;&NewLine;<h3>Paolo Alto </h3>&NewLine;Is well known for its great firewalls and is now one of the leaders in cloud security&period; Its operations have adapted to modern technology, having acquired many successful businesses in previous years to help improve this side of the company&period; &NewLine;&nbsp&semi;&NewLine;Since the start of the year, Paolo Alto has increased by 15&period;84&percnt;, which doesn’t seem like a lot but after decreasing by 20&percnt; in February, these results are very good&period; It will be intriguing to see how they perform after this quarter for the Q2 earnings report on August 16th&period; &NewLine;<h3>Broadcom</h3>&NewLine;The other stock is one that many come across as a bit controversial&period; Broadcom specialises in the production of semiconductors&period; However, Broadcom is aiming to diversify their operations and explore other avenues and one of those is cybersecurity&period;&NewLine;&nbsp&semi;&NewLine;Broadcom acquired Symantec and only a fifth of their revenue is generated through cybersecurity&semi; however, this is a very different investment&period; Due to their diversified operations, it allows you to diversify your portfolio even more, as Broadcom covers software development and is a global supplier of semiconductors and cybersecurity&period; So if one sector is affected by Broadcom, other industries can lessen the blow for them&period;&NewLine;&nbsp&semi;&NewLine;<h2>To Conclude</h2>&NewLine;Will CrowdStrike bounce back from this slight decrease or is this the beginning of something that can actually decrease a lot more due to the compensation they may have to pay out&quest; The stock market can be difficult to predict so that is down to your due diligence&period;&NewLine;&nbsp&semi;&NewLine;CrowdStrikes cloud platform is great for preventing any type of cybercrime, whether that be sensitive data being released or <a href="https&colon;//wealthrecovery&period;co&period;uk/our-services/bank-fraud/">bank fraud</a>&period; It is arguably the best cyber security stock out there and it is certainly worth the investment&period; &NewLine;