This story was originally published here.
Even before the novel coronavirus came through, CrowdStrike (NASDAQ:CRWD) was already under significant pressure. CRWD stock hit its 2020 high on Feb. 19 just like the S&P 500. However, shares were still down more than 33% from its 52-week high at that point.
While shares were then crushed lower amid the coronavirus selloff, we’ve seen a robust rebound in CrowdStrike.
Shares have not only recouped all of the losses from the February high, but have actually made new all-time highs earlier this month. Let’s look at three reasons bulls can continue to bet on CRWD stock.
Coronavirus as a Catalyst
What propelled CRWD stock to new highs earlier this month? It was the company’s better-than-expected earnings results. Of course, it helped that the overall market has been in a strong uptrend too.
CrowdStrike earned 2 cents per share in the quarter, 8 cents better than expected as analysts were looking for a loss in the quarter. Revenue of $178.1 million grew more than 85% year-over-year and beat expectations by $12.7 million.
Here’s the kicker. CrowdStrike didn’t just deliver a beat-and-beat, it raised its guidance as well. In short, the company is seeing increasing demand for its cybersecurity products as Covid-19 forces more work-from-home and online work scenarios. From management’s release (bold emphasis added):
CrowdStrike finished the quarter with strong momentum and delivered results that exceeded our expectations across the board … Cybersecurity is mission critical and in the quarter our customers continued to prioritize their cybersecurity investments. With both security administrators and end-users working from home, we believe the rapid shift to a remote workforce has helped increase our leadership.
At a time where most companies are starving for growth or saw a large decrease in revenue and cash flow, CrowdStrike is seeing an inflow of business…
Editor's Note: Click here to keep reading.
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