Is This Top Artificial-Intelligence-Powered Cybersecurity Stock a Buy?
CrowdStrike Holdings, Inc (NASDAQ: CRWD) provides artificial-intelligence-powered endpoint protection through its security cloud, among other cybersecurity services. Several macroeconomic secular conditions make this a likely long-term winner. First, it seems everyone from the President to small businesses is focused on cybersecurity vulnerabilities, and for good reason.
In 2020 a group of hackers from Russia used a vulnerability in SolarWinds (NYSE: SWI) software to breach a number of United States Government agencies where they accessed data for months. In the wake of this and other attacks, President Biden held a cybersecurity summit at the White House where he stressed a renewed focus in combating such breaches, and signed an executive order mandating action. The private sector is no less under siege with breaches, malware, and ransomware as constant threats. This provides CrowdStrike a secularly favorable market and an impressive $43.6B total addressable market (TAM) by 2023.
Another tailwind for the company has been the fact that the pandemic has accelerated work-from-home trends. Companies with workers off-site must secure additional endpoints and face unique security challenges, and CrowdStrike is expert at addressing these threats. The macroeconomic landscape is ripe for CrowdStrike's technology and its stated mission: "We Stop Breaches."
Source Fool.com
