Crowdstrike is cybersecurity

Crowdstrike is cybersecurity and investors are beginning to take notice of the explosive growth potential of future earnings.

The war in Ukraine and Russia’s close ties with internationally renowned hacker groups are a major wakeup call.

For one thing, days before Russian tanks started rolling into Ukraine, a massive cyber attack hit Viasat (VSAT). Viasat is a provider of high speed satellite networking for military and commercial customers. Without a doubt the hack was a success with internet connectivity disrupted across Ukraine as the invasion began.

Not surprisingly the Biden administration is taking steps to strengthen domestic infrastructure cyber defenses. This is potentially a big win for Crowdstrike. More importantly, this means big public funding for cybersecurity in general.

Currently Crowdstrike provides cybersecurity to 15 of the 20 largest banks and 77 of the Fortune 100 companies. The company was founded in 2011 and has annual sales of $1.45 billion during 2021. CEO George Kurtz believes 2022 sales will jump to $2.1 billion, a 44% increase YoY. Better yet, the company’s forecast does not factor in the Biden initiative.

Crowdstrike shares currently trade at $218 per share. Shares tumbled from $300 along with everything technology related during the past two quarters. But, technology stocks appear to have bottomed, see more information here.

On a side note, this makes an idea TFSA investment. Since the company does not pay dividends, you don’t need to worry about any withholding taxes.

Conclusion

On the whole, the technology stock beat down appears over. Also, the narrative around protecting enterprises from cybersecurity is growing louder. In the coming years massive amounts of money will be spent to protect computer networks.

I jumping on this trade today. Currently the stock is ripping higher by >7%. I don’t like to buying into extreme strength, so I’m setting a buy stop just above yesterday’s low at $197. Once I purchase shares I’ll update the risk parameters and let you know where I placed my stop loss.

As always, mind your risk of ruin.

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Updated Portfolio Positions –>

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