CrowdStrike Holdings Share Price Forecast March 2022 – Time to Buy CRWD?

Shares of American cybersecurity technology company CrowdStrike Holdings(NASDAQ: CRWD) are in the green today, after closing at $208.06 as of March 18^th (19:59 EST). CrowdStrike Holdings Shares are on the rise after the company released its fourth-quarter earnings results that soundly beat analyst estimates. According to management, the business is thriving which allowed it to provide solid guidance for the coming year. CrowdStrike Holdings Shares are currently down more than 20% from their all-time high.

CrowdStrike Holdings – Technical Analysis

According to the financial statement released by CrowdStrike Holdings, the company’s market cap is at $47.725 billion with total assets worth $3.618 billion. Revenue for 2020 was at $1.45 billion with a profit margin of -16.18% compared to $874.44 million in 2019.

Moving averages such as Exponential Moving Average (10)(191.36), Simple Moving Average (10)(184.91), Exponential Moving Average (20)(186.63), Simple Moving Average (20)(183.59)and Exponential Moving Average (30)(185.37) are indicating a buy action. Oscillators such as Relative Strength Index (14)(61.33), Stochastic %K (14, 3, 3)(87.37) Commodity Channel Index (20)(129.90), Average Directional Index (14)(16.22) and Awesome Oscillator(9.84) are neutral.

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Recent Developments

CrowdStrike was founded by George Kurtz, Dmitri Alperovitch and Gregg Marston. The company mainly provides several cloud-based security modules on a software-as-a-service (Saas) subscription model. It has come up with the Falcon platform, which eliminates the threat of cyberattacks by using machine learning and artificial intelligence. This provides identity protection, blocks unauthorized access to data and secures endpoints such as desktops, laptops, mobile devices, tablets and servers.

CorwdStrike Holdings is at the forefront of changing how companies protect their electronic systems and data. They are looking to adopt cloud-based solutions powered by artificial intelligence by replacing rules-based legacy software. By using AI, CrowdStrike monitors networks, adapt to newly emerging threats and alert any suspicious activity as they happen.

In its fourth-quarter report, CrowdStrike reported a revenue increase of 63% and reached $431 million, which beat expectations of $412 million and brought fiscal-year 2022, bringing the total revenue for the fiscal year 2022 to $1.5 billion. An alarming spike in cybercrime can be attributed to this increase. Ransomeware attacks have skyrocketed in the last few years.

Should You Buy CRWD Shares?

Investors should take a look at some positive metrics for CrowdStrike Holdings.  The company’s total subscriber base grew to 16,325 during the quarter — with 1,638 added in the fourth quarter alone, representing a 65% year-over-year subscription growth. It has 15 of the major bands as customers. The vast majority of them also buy multiple security modules.

There is still more room for growth when it comes to customer acquisition, as management expects the total addressable market for cybersecurity is $54.8 billion in 2022 which will only rise yearly.

There is a lot of optimism amongst investors regarding CrowdStrike Holdings shares. But this comes at a cost, as the shares aren’t cheap compared to some other companies in the sector. For instance, CrowdStrike Holdings shares trade at a price-to-sales ratio of almost 32, making it expensive for a high growth tech company. Various analysts have suggested that the company will increase earnings to $1.09 per share this year and $1.60 next year.

Thus CrowdStrike Holdings shares can look like an intelligent choice. The shares are for investors who are interested in a growth stock in an otherwise challenging tech market. Considering this, now is a good time to pick up CrowdStrike Holdings shares.

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