We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CrowdStrike’s (CRWD - Free Report) shares have jumped 47.8% in the year-to-date period compared with the Zacks Internet - Software industry’s growth of 12.7% and the Zacks Computer and Technology Sector’s return of 28.6%. The growth reflects the company’s innovative product line and positive response from the customers.
CrowdStrike recently unveiled Falcon Complete Next-Gen Managed Detection and Response (MDR) to prevent cyber breaches through rapid and precise response. This solution secures the whole enterprise and not just the endpoints, identity and cloud. The Falcon Complete Next-Gen MDR uses third-party data from Falcon Next-Gen SIEM and leverages artificial intelligence (AI) capabilities as well.
Falcon Complete Next-Gen MDR provides unified visibility by connecting data from all the platforms in one place. The architecture has been able to speed up cyber analysts’ forensic processes by 75%. Moreover, CRWD uses its own analysts to take immediate and precise actions to prevent breaches as soon as they start.
The solution will enable CrowdStrike to improve its relationship with its partners. The company’s partners will now be able to manage large amounts of security data, detect threats quickly, and reduce costs and complexity, all while keeping its customers happy.
The Falcon Complete Next-Gen MDR is one of the many products that CrowdStrike has launched this year. Other offerings include CrowdStrike Falcon for Insurability, Falcon for Defender and Falcon Next-Gen SIEM ISV Ecosystem. CRWD has also released Falcon Application Security Posture Management to the general public as an integrated part of CrowdStrike’s Falcon Cloud Security platform to counter breaches from code to cloud.
So far this year, CrowdStrike has partnered with industry giants like Google Cloud, Cloudflare (NET - Free Report) , NVIDIA (NVDA - Free Report) and Amazon’s (AMZN - Free Report) Amazon Web Services (“AWS”) to improve its offerings.
In the field of AI, CRWD has partnered with Google Cloud and Cloudflare. CrowdStrike and Google Cloud together are improving MDR using CRWD’s Falcon and Google Cloud’s Security Operations platforms. CrowdStrike is also improving its Falcon cybersecurity platform by combining Cloudflare One with Falcon Next-Gen SIEM.
In the field of generative AI, CrowdStrike has partnered with NVIDIA to improve its CrowdStrike Falcon XDR platform by integrating NVIDIA’s GPU-optimized AI pipelines and software. CRWD is also leveraging AWS services, including Amazon Bedrock and AWS SageMaker, to improve its cloud security innovation.
Competition and Near-Term Challenges
Behind the curtains of several product launches lies the intense competition that CrowdStrike is facing in the cybersecurity space. The company is broadening its capabilities to survive in this highly competitive market. Over the past few years, CRWD has also invested heavily to enhance its sales and marketing capabilities to beat its competitors in capturing market share. As a result, its sales and marketing expenses have almost tripled in the past three fiscals from $601 million in fiscal 2021 to $1.72 billion in fiscal 2024.
The competitive landscape is also putting pricing pressure on CRWD. As the cybersecurity market evolves, CrowdStrike faces threats from existing large competitors and new entrants as well. In the long run, this could lead CRWD to resort to competitive pricing to maintain and capture the market share.
CrowdStrike’s near-term prospects might be hurt by softening IT spending. The still-high interest rates and protracted inflationary conditions have impacted consumer spending. Meanwhile, enterprises are postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues.
Some of the cybersecurity players have already pointed out that organizations are delaying or taking more time in finalizing deals or even rightsizing deals in the current uncertain macroeconomic environment. This makes us slightly cautious about CrowdStrike’s prospects in the near term.
Conclusion
CrowdStrike is expanding its product offerings rapidly to survive in the competitive landscape of cybersecurity, which experiences new types of cyber breaches every now and then. These product releases and partnerships are expected to benefit the company in the long run.
However, the near-term growth prospects are likely to be hurt by softening IT spending. Intensifying competition in the security application market is a concern. Elevated operating expenses may remain overhangs on this Zacks Rank #5 (Strong Sell) company’s margins.
Image: Shutterstock
CrowdStrike (CRWD) Unveils Falcon Complete Next-Gen MDR
CrowdStrike’s (CRWD - Free Report) shares have jumped 47.8% in the year-to-date period compared with the Zacks Internet - Software industry’s growth of 12.7% and the Zacks Computer and Technology Sector’s return of 28.6%. The growth reflects the company’s innovative product line and positive response from the customers.
CrowdStrike recently unveiled Falcon Complete Next-Gen Managed Detection and Response (MDR) to prevent cyber breaches through rapid and precise response. This solution secures the whole enterprise and not just the endpoints, identity and cloud. The Falcon Complete Next-Gen MDR uses third-party data from Falcon Next-Gen SIEM and leverages artificial intelligence (AI) capabilities as well.
Falcon Complete Next-Gen MDR provides unified visibility by connecting data from all the platforms in one place. The architecture has been able to speed up cyber analysts’ forensic processes by 75%. Moreover, CRWD uses its own analysts to take immediate and precise actions to prevent breaches as soon as they start.
The solution will enable CrowdStrike to improve its relationship with its partners. The company’s partners will now be able to manage large amounts of security data, detect threats quickly, and reduce costs and complexity, all while keeping its customers happy.
CrowdStrike Price and Consensus
CrowdStrike price-consensus-chart | CrowdStrike Quote
CrowdStrike Enhances Its Product Portfolio
The Falcon Complete Next-Gen MDR is one of the many products that CrowdStrike has launched this year. Other offerings include CrowdStrike Falcon for Insurability, Falcon for Defender and Falcon Next-Gen SIEM ISV Ecosystem. CRWD has also released Falcon Application Security Posture Management to the general public as an integrated part of CrowdStrike’s Falcon Cloud Security platform to counter breaches from code to cloud.
So far this year, CrowdStrike has partnered with industry giants like Google Cloud, Cloudflare (NET - Free Report) , NVIDIA (NVDA - Free Report) and Amazon’s (AMZN - Free Report) Amazon Web Services (“AWS”) to improve its offerings.
In the field of AI, CRWD has partnered with Google Cloud and Cloudflare. CrowdStrike and Google Cloud together are improving MDR using CRWD’s Falcon and Google Cloud’s Security Operations platforms. CrowdStrike is also improving its Falcon cybersecurity platform by combining Cloudflare One with Falcon Next-Gen SIEM.
In the field of generative AI, CrowdStrike has partnered with NVIDIA to improve its CrowdStrike Falcon XDR platform by integrating NVIDIA’s GPU-optimized AI pipelines and software. CRWD is also leveraging AWS services, including Amazon Bedrock and AWS SageMaker, to improve its cloud security innovation.
Competition and Near-Term Challenges
Behind the curtains of several product launches lies the intense competition that CrowdStrike is facing in the cybersecurity space. The company is broadening its capabilities to survive in this highly competitive market. Over the past few years, CRWD has also invested heavily to enhance its sales and marketing capabilities to beat its competitors in capturing market share. As a result, its sales and marketing expenses have almost tripled in the past three fiscals from $601 million in fiscal 2021 to $1.72 billion in fiscal 2024.
The competitive landscape is also putting pricing pressure on CRWD. As the cybersecurity market evolves, CrowdStrike faces threats from existing large competitors and new entrants as well. In the long run, this could lead CRWD to resort to competitive pricing to maintain and capture the market share.
CrowdStrike’s near-term prospects might be hurt by softening IT spending. The still-high interest rates and protracted inflationary conditions have impacted consumer spending. Meanwhile, enterprises are postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues.
Some of the cybersecurity players have already pointed out that organizations are delaying or taking more time in finalizing deals or even rightsizing deals in the current uncertain macroeconomic environment. This makes us slightly cautious about CrowdStrike’s prospects in the near term.
Conclusion
CrowdStrike is expanding its product offerings rapidly to survive in the competitive landscape of cybersecurity, which experiences new types of cyber breaches every now and then. These product releases and partnerships are expected to benefit the company in the long run.
However, the near-term growth prospects are likely to be hurt by softening IT spending. Intensifying competition in the security application market is a concern. Elevated operating expenses may remain overhangs on this Zacks Rank #5 (Strong Sell) company’s margins.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.