Does CrowdStrike Deserve a Spot in Your Portfolio in 2022?
CrowdStrike (NASDAQ: CRWD) was one of the hottest stocks in 2020 after its scorching hot return of over 300%. The company specializes in cloud workload and endpoint security, assisting enterprises with threat intelligence and cyberattack response services. According to a recent report published by PricewaterhouseCoopers, 69% of respondents predict an increase in cybersecurity spending for their organizations in 2022. Meanwhile, Gartner estimates that spending for information security will increase to $172 billion in 2022 from $155 billion in 2021.
Although these trends appear attractive on the surface for CrowdStrike, it also means that the company needs to ratchet up its efforts to thwart competition. CrowdStrike's latest earnings report was rife with a number of encouraging metrics, yet the stock retreated from its year-to-date gains after falling 23% in November and sinking an additional 8% in December. As 2021 draws to a close, let's dig in and see if CrowdStrike stock is poised for a comeback in 2022.
The advent of enterprise mobility and 'bring your own device' protocols are changing the modern work environment. Although responding to email on a mobile device or accessing sensitive files on a personal tablet allow for efficiencies and increased productivity, these developments come with risk. As more devices connect to corporate servers and have access to private information, more endpoints are inherently at risk of cyberattacks.
Source Fool.com
