Your portfolios in brief
CrowdStrike is a leading cybersecurity company, revolutionizing security with the world's most advanced cloud-native platform. Founded to protect organizations against cyberattacks, CrowdStrike has rapidly established itself as an undisputed leader in cloud workload and endpoint security. With a global presence and a team dedicated to constant innovation, CrowdStrike offers unprecedented protection, enabling businesses to defend themselves effectively against modern threats.
-Highlights in 2023
Annual guidance: CrowdStrike impressed the markets with financial results exceeding expectations, with EPS of $0.95 and sales of $845 million for the quarter.
Sales for the quarter: The company reported a significant increase in sales, underlining its continued growth in a competitive sector.
Acquisition of Flow Security: This strategic acquisition positions CrowdStrike for future expansion, targeting $10 billion in annual recurring revenues by 2030.
Performance versus Wall Street expectations: CrowdStrike outperformed expectations with its financial results, reinforcing its position as a leader in the cybersecurity sector.
Earnings per share: 95 cents adjusted vs. 82 cents expected
Revenue: $845 million vs. $839 million expected
-Why is this a stock to watch ?
CrowdStrike stands out for its ability to deliver solid results in an ever-changing cybersecurity market. The company is benefiting from several favorable winds, including the increase in cyberattacks, new SEC regulations, and the integration of AI that are driving demand for its services.
Shares in CrowdStrike jumped as much as 21% in after-hours trading on Tuesday after the cybersecurity company announced better-than-expected top and bottom line results, as well as stronger-than-expected guidance for the coming quarter and the full year.
CrowdStrike has now reported GAAP net income for the last four quarters, CFO Burt Podbere said in the press release. Annual sales were up 36% year-on-year, from $2.24 billion to $3 billion.
The company also announced that it would acquire Flow Security for an undisclosed price in a cash and stock transaction, due to close in the company's first fiscal quarter. The company has stepped up its M&A activities in recent months.
-Conclusion
In a context where many cybersecurity companies have encountered difficulties, CrowdStrike has performed exceptionally well, demonstrating its robustness and ability to outperform its competitors. This performance is all the more remarkable in a sector recently marked by mixed prospects, as evidenced by the difficulties of Palo Alto Networks and Zscaler. Analysts' unanimous approval of CrowdStrike, with strong buy recommendations and no sell recommendations, underlines confidence in its upward trajectory, already exceeding expectations with an average target exceeded.
CrowdStrike's leading position in the cybersecurity sector, reinforced by optimistic forecasts and an ambitious target for annual recurring revenues, confirms its potential for sustainable growth. This solidity and long-term vision justify our decision to maintain CrowdStrike in our portfolio. We see CrowdStrike not only as a current strategic investment, but also as a commitment to the future of digital security and the financial prosperity of our customers.
Markets in brief
Monday
Dow Jones: The index fell by 0.25% to close at 38,989.83 points.
NASDAQ: The index lost 0.41% to close at 16,207.51 points.
S&P 500: The broad index fell by 0.12% to close at 5,130.95 points.
Monday's losses come at a time when the market has rallied strongly in recent weeks, fueled by enthusiasm around artificial intelligence. The heavily tech-heavy NASDAQ index posted an all-time high on Friday, breaking a 2021 record to become the last of the major stock indices to reach a record close this year. This week, investors will be looking for clues on the future direction of interest rates from Federal Reserve Chairman Jerome Powell. The central bank leader is expected to provide monetary policy updates to the House of Representatives on Wednesday and the Senate on Thursday.
Nvidia continued its impressive momentum, rising by 3.60% to overtake Saudi Aramco as the world's third-largest market capitalization. This performance underlines the strength of the semiconductor sector, with Intel and Qualcomm also up by 4.08% and 2.13% respectively.
- Securities in brief
Nvidia (+3.60%): Continues to dominate the technology sector with a valuation that defies the global giants.
Apple (-2.54%): Faced with regulatory challenges in Europe, impacting its share price.
JetBlue (+4.33%): The abandonment of the merger with Spirit Airlines was well received by the market.
Macy's (+13.55%): The significant increase in the takeover bid shows investors' confidence in Macy's potential.
Tesla (-7.16%): Concerns about deliveries are having a negative impact on the share price.
Tuesday
Dow: The index fell by 1.04% to close at 38,585.19 points.
NASDAQ: The index fell 1.65% to close at 15,939.59 points.
S&P 500: The broad index lost 1.02% to close at 5,078.65 points.
The session was characterized by risk aversion, as investors positioned themselves cautiously in anticipation of Fed Chairman Jerome Powell's speeches and the employment report. Technology stocks, which have been driving the market since the beginning of the year, suffered significant corrections, while some stocks, such as Target and Nvidia, managed to hold their own.
- Stockss in brief
Microsoft (-2.96%): The company fell sharply, in line with profit-taking in technology stocks.
Apple (-2.84%): hit by a €1.84 billion fine from the European Commission and concerns over iPhone sales in China, Apple's share price fell.
Amazon (-1.95%): The stock also suffered from profit-taking, reflecting the general trend in the technology sector.
Tesla (-3.93%): The company is facing challenges, including a slowdown in the electric vehicle market and competition from China, leading to a significant drop in its share price.
Nvidia (+0.86%): Against the trend, Nvidia managed to post a slight rise, continuing to benefit from the craze for artificial intelligence technologies.
Target (+12.02%): The company rose sharply following the publication of better-than-expected results, marked by improved margins and effective inventory management.
New York Community Bancorp (+17.95%): After a sharp fall, the bank rebounded, despite concerns about its financial stability.
Wednesday
Dow: The index rose by 0.20% to close at 38,661.05 points. The blue-chip average was affected by a drop of over 2% at Disney.
NASDAQ: The index gained 0.58% to close at 16,031.54 points.
S&P 500: The broad index gained 0.51% to close at 5,104.76 points.
The session was characterized by a search for buying opportunities after the previous day's pullback, but momentum remained subdued as we awaited the jobs report. Statements by Fed Chairman Jerome Powell, indicating the possibility of an interest rate cut this year, provided some support for the market.
This trading day reveals the complexity of current market dynamics, where macroeconomic expectations, individual company performance, and monetary policies all play a crucial role in investment decisions. Market players continue to navigate in an uncertain environment, with a watchful eye on upcoming economic indicators.
- Stockss in brief
Meta (+1.20%): Among technology stocks, Meta managed to finish in the green, reflecting targeted investment selection by market players.
Nvidia (+3.18%): Continuing its momentum, Nvidia recorded a notable rise, underlining the sustained interest in companies at the heart of technological innovation.
Tesla (-2.32%): Tesla suffered another sharp decline, impacted by pessimistic first-half earnings forecasts from Morgan Stanley, against a backdrop of increased competition and sectoral challenges.
New York Community Bancorp (+7.45%): After a dramatic fall, NYCB rebounded following the announcement of a fundraising of over $1 billion, illustrating the volatility and challenges faced by some financial institutions.
Nordstrom (-16.18%): The department store chain saw its share price fall following mixed sales forecasts for the current financial year, despite better-than-expected quarterly results.
Abercrombie & Fitch (-3.54%): Despite better-than-expected results, the market's negative reaction to its margins led to a fall in the share price.
Foot Locker (-29.35%): Heavily impacted by a quarterly loss and the postponement of its margin targets, Foot Locker suffered a significant fall in its share price.
Thursday
Dow: The index rose by 0.34%, gaining 130.30 points to close at 38,791.35.
NASDAQ: The index gained 1.51% to close at 16,273.38 points.
S&P 500: The broad index gained 1.03% to close at 5,157.36 points, setting a new record.
Thursday's trading session saw a significant rise in the main indices, supported by investor optimism about the US economy and reassuring statements from the Federal Reserve, as well as encouraging news about inflation and growth.
These positive movements were influenced by Fed Chairman Jerome Powell's speech on the possibility of interest rate cuts this year, reinforcing expectations of a "soft landing" for the US economy. Recent lower-than-expected macroeconomic data seem to confirm this trend towards a controlled economic slowdown.
The session was also characterized by optimism following the European Central Bank's announcement that it was lowering its inflation and growth forecasts while maintaining interest rates, a positive signal on the international inflation front. Equities were pushed to new heights, thanks in particular to gains in the technology sector, with Intel leading the Dow with a rise of over 3%.
- Stockss in brief
Nvidia (+4.47%): The semiconductor leader shone, reflecting the sector's strong performance.
New York Community Bank (+5.78%): After a turbulent period and a significant capital raising, the bank saw its shares rally.
Rivian (+13.42%): Tesla's competitor caused a stir with the presentation of its new, more affordable R2 model.
Victoria's Secret (-29.70%): Disappointing sales forecasts for 2024 heavily penalized the company.
Kroger (+9.88%): The supermarket chain was hailed for its rising sales and improved margins.
Friday
S&P 500: The index was up by around 0.2% in the morning and is heading for a week of gains,
NASDAQ: This opened up 0.3%.
Dow: The index fell slightly by 2 points at the opening of markets on Friday.
Released on Friday, February's employment data sent mixed signals as to when it will be wise for the Fed to start cutting interest rates. On the one hand, the number of jobs added last month far exceeded expectations, coming in at 275,000 against an estimate of 198,000 according to economists polled by Dow Jones. This may suggest that the economy remains very buoyant.
