Performance: -8.4%
Nasdaq-listed CrowdStrike Holdings was among the losers in our portfolio for the four-month period, with an 8.4% loss. The company is a leader in the cloud security space that provides endpoint security, threat intelligence, workload protection, and cyber attack response services. CrowdStrike offers its cybersecurity services primarily through its Falcon platform, which leverages the network effect of crowdsourced data.
The case for the company remains from the previous year, as it is the leader in a niche industry with great growth potential. CrowdStrike’s focus on the network effect by offering scalable, subscription-based products and solutions is strategic as companies in the cloud industry are dependent on the network effect for the growth in value of their businesses. Further, CrowdStrike’s cloud-scale artificial intelligence, which gets smarter as it consumes more data, is expected to strengthen the company’s moat over competitors, given that the company covers a wide range of clients. Even if there is a slowdown in the economy, CrowdStrike is expected to benefit because companies are expected to simplify their operations, and their offerings are well suited for this event.
