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CrowdStrike (CRWD) Expands Its Cloud and AI Capabilities

CrowdStrike CRWD recently collaborated with Hewlett Packard Enterprise HPE to integrate HPE GreenLake and OpsRamp AIOps with its Falcon cybersecurity platform.

This collaboration allows CRWD's customers to benefit from a unified cloud-based platform that integrates artificial intelligence into their IT infrastructure while also providing robust cybersecurity features.

The OpsRamp platform focuses on enabling businesses to simplify the design, development, testing and deployment of AI applications. HPE GreenLake, on the other hand, brings cloud-like flexibility to data centers and endpoints.

CrowdStrike’s collaboration with HPE will allow CRWD’s customers to monitor and automate tasks for systems that use NVIDIA’s NVDA end-to-end accelerated computing stack, including NVIDIA NIM and AI software, NVIDIA Tensor Core GPUs and AI clusters. Moreover, enterprises will now be able to leverage HPE GreenLake to fast-track the adoption of generative AI in their endpoints, datacenter and cloud.

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CrowdStrike is riding on a strong and innovative portfolio with the growing adoption of its Falcon platform. Shares of the company have rallied 52.5% year to date, outperforming the Zacks Internet Software industry’s growth of 12%.

CrowdStrike Price and Consensus

CrowdStrike price-consensus-chart | CrowdStrike Quote

Enhancing Product Capabilities Through Partnerships

CrowdStrike has partnered with a number of industry giants, including Cloudflare NET and NVIDIA, to enhance its product capabilities.

The partnership between CrowdStrike and Cloudflare was focused on integrating Cloudflare One Zero Trust protection solution and CRWD’s Falcon Next-Gen SIEM to improve the security of their joint channel partners.

CRWD also merged its Falcon platform data with NVIDIA's GPU-optimized AI pipelines and NVIDIA NIM microservices, enabling their shared customers to seamlessly create custom and secure generative AI models.

With a rising number of crucial partnerships, client base and deepened product portfolio, CrowdStrike is on a strong growth trajectory and that is reflected in the company’s last four earnings. The company’s non-GAAP earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 15.8%.

For fiscal 2025, CRWD expects revenues between $3,976.3 million and $4,010.7 million. The consensus mark for fiscal 2025 revenues is pegged at $4 billion, indicating year-over-year growth of 30.8%.

Non-GAAP earnings for 2025 are anticipated in the band of $3.93-$4.03 per share. The consensus mark for fiscal 2025 non-GAAP earnings is pegged at $3.98 cents per share, suggesting growth of 28.8% year over year.

Conclusion

CrowdStrike’s diversified product portfolio, strong partner base and expanding clientele make it an important player in this sphere. These strengths, coupled with its solid financial performance, position CRWD as a promising opportunity for long-term growth.

Despite its strengths, CrowdStrike’s near-term prospects might be hurt by softening IT spendings. 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 this Zacks Rank #5 (Strong Sell) company’s prospects in the near term.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Moreover, CrowdStrike’s valuation looks stretched at the current level, as reflected by the Value Score of F. We note that CrowdStrike currently has a one-year forward 12-month P/E ratio of 90.37. This level compares unfavorably with the industry average of 33.81. Hence, it would be prudent for investors to stay away from investing in the stock right now.

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NVIDIA Corporation (NVDA) : Free Stock Analysis Report

Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report

CrowdStrike (CRWD) : Free Stock Analysis Report

Cloudflare, Inc. (NET) : Free Stock Analysis Report

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