Hi folks,

I would like to add a cybersecurity share to my portfolio this year. Since I'm sure some people are already invested here and I'm not yet familiar with the market (apart from the growth potential), I'd be interested in your opinion.

My favorite at first glance would probably be Palo Alto, even if I first have to read up on why there was such a sharp drop in profits. Which player would be your pick and why?

$PANW (+1.56%)

$CRWD (-2.15%)

$FTNT (-0.72%)

$NET (-3.11%)

In addition to my World ETF core, I would like to invest in the following shares (partly via a savings plan) in the coming year.

How do you rate these shares?

Which of them would you also take or do you already have in your portfolio?

$CRWD (-2.15%) - Crowdstrike

$CRM (-2.4%) - Salesforce

$AVGO (-1.91%) - Broadcom

$ACN (-1.57%) - Accenture

$SOFI (-2.6%) - SoFi

$MELI (+0.25%) - Mercadolibre

$TSLA (-0.19%) - Tesla

$AXON (-1.75%) - Axon

$NU (+0.08%) - Nu Holdings (possibly)

Yesterday and the day before yesterday, I sold my first individual shares and a small part of my Bitcoin and Ethereum holdings at a profit in order to build up an investment reserve.

My gut feeling tells me that I will be happy about this in Q1/2025. I sold Amazon at a 45% profit, Crowdstrike at 75%, Bitcoin at 100% and Ethereum at 35%.

What does your gut feeling say with a view to 2025 and a potentially more significant correction?

After the crowdstrike breakdown and the massive sell-off, I made an anticyclical move and have now $CRWD (-2.15%) and have now sold again at a tidy profit.

I have already $ZS (+1.08%) from the sector and see more potential here for the future.

Crowdstrike $CRWD (-2.15%) Q3 2024

Financial performance

• RevenueTotal revenue in the third quarter of financial year 2025 amounted to USD 1.01 billion, an increase of 29 % compared to USD 786.0 million in the third quarter of financial year 2024. Subscription revenue increased by 31 % to USD 962.7 million.
• Annual Recurring Revenue (ARR)Grew by 27% to USD 4.02 billion as at October 31, 2024.

Balance sheet overview

• Cash and cash equivalentsUSD 4.26 billion as of October 31, 2024, providing solid financial flexibility.
• Total assetsUSD 7.78 billion.
• Total liabilitiesUSD 4.69 billion.

Details of the profit and loss account

• GAAP loss from operating activitiesUSD 55.7 million, compared to a profit of USD 3.2 million in the previous year.
• Non-GAAP income from operationsUSD 194.9 million, an increase from USD 175.7 million in the previous year.
• GAAP net lossUSD 16.8 million, compared to a profit of USD 26.7 million in the previous year.

Cash flow overview

• Net cash from operating activitiesUSD 326.1 million, an increase compared to USD 273.5 million in the previous year.
• Free cash flowUSD 230.6 million, a decrease compared to USD 239.0 million in the previous year.

Key figures and profitability metrics

• Subscription gross margin:
• GAAP: 78% for the third quarter in financial years 2025 and 2024.
• Non-GAAP: 80% for the third quarter in financial years 2025 and 2024.

Segment information

• Module adoption rates: Adoption rates increased to 66 % (five or more modules), 47 % (six or more), 31 % (seven or more) and 20 % (eight or more modules).

Competitive position

CrowdStrike has been recognized as a leader in several industry reports, including the Gartner Magic Quadrant for Endpoint Protection Platforms, underscoring its strong market position.

Management forecasts and comments

• Forecast Q4 FY25:
• Total revenue is expected to be between USD 1,028.7 million and USD 1,035.4 million.
• Non-GAAP net income per share is forecast to be between USD 0.84 and USD 0.86.

Risks and opportunities

• Risks:
• Challenges due to rapid growth.
• Competitive pressure in a highly competitive market.
• Possible impact of the security incident of July 19, 2024.
• Opportunities:
• Further expansion of market leadership through technological innovations.
• Rising customer demand for cybersecurity solutions.

Positive aspects

Strong sales growth and reaching the USD 1 billion quarterly mark.

High ARR growth rate of 27%, demonstrating solid customer retention and expansion.

Recognized as an industry leader in several key reports.

Ample cash and cash equivalents providing financial flexibility.

Positive non-GAAP income from operations.

Negative aspects

GAAP loss from operating activities and net loss.

Decrease in free cash flow compared to previous year.

Impact of the July 19, 2024 incident on the company.

High share-based remuneration burdening GAAP profitability.

Competitive pressure and market risks that could jeopardize future growth.

$CRWD (-2.15%) earnings tonight, what do you think?

Earnings next week

$DELL (-2.42%)

$CRWD (-2.15%)

$ANF (+0.83%)

$ZM (-0.74%)

$KSS (+1.09%)

$WDAY (-0.88%)

$BBY (+1.31%)

$BBWI (-0.67%)

$BLBD (+2.81%)

$ADSK (-2.28%)

$M (-0.46%)

$FLNC

$HPQ (+1.06%)

$DKS (+0.81%)

$AMBA (-2.39%)

$URBN (+0%)

$DDD (-3.73%)

$BURL (+2.91%)

$A (+2.19%)

$WWD (+0%)

$HDL

$IREN (+2.78%)

$GIW

$SMTC (+0.53%)

$JWN (+0.35%)

$NTNX (+0.17%)

$HSAI (+10.38%)

$LESL (+4.25%)

$PFLT (+0.71%)

$GES (+2.67%)

$ENTA (-3.31%)

$ADI (-1.41%)

$PNNT (-1.47%)

$SUPV (-1.08%)

$BLRX (-3.62%)

$PD

$FRO (+10.13%)

$NJR (+0%)

$ARWR (-5.01%)

$TWG

$MANU (-1.06%)

$YY (-0.53%)

$NOAH (-0%)

$ICCM

$SJM (-3.09%)

$CLGN

$UNM

$GOGL (+1.16%)

$TITN (-1.47%)

Cantor Fitzgerald has increased the price target for the shares of CrowdStrike
$CRWD (-2.15%) pointing to an expected recovery in the second half of fiscal 2026. Analysts see growing demand for cybersecurity solutions, which should drive the company's growth. CrowdStrike remains a leading provider in the cloud security platform market.

Further information can be found in the article on Investing.com.

The news is based on what I personally consider to be reputable sources. However, I do not guarantee their accuracy. No investment advice. Follow me for more updates!