CrowdStrike Holdings [NASDAQ: CRWD] is now public, and made its market debut yesterday with gains of roughly 70%. The stock was initially priced at $34, and closed the day at $58. The company still has over 200 million outstanding shares, which gives it a valuation of about $12 billion. It is a clear signal that there is huge investor appetite for it.
There are a number of factors giving investors a huge appetite for this stock. One of them is its growing revenues. In the past one year, the company’s revenues have grown by 110% to stand at $249.8 million. For the quarter that ended in April, the company recorded revenues of between $93.6 million to $95.7 million. It shows that the uptake of this company’s products in the market is quite good, and that ultimately they will help put it on a path to profitability.
On top of that, the company is in a large and growing market. According to the company’s CEO, George Kurtz, CRWD’s potential market is worth about $29 billion. He also adds that they expect the market to keep growing, as they continue to add functionalities to the security platform. He believes the company has a real chance of becoming a dominant player in the cloud security market. He also added that CRWD is adding value in a unique way, eliminating firewalls and other conventional security approaches. This is a big deal and could see the value of this stock rise significantly in the near term. With such prospects, it is not surprising that CRWD is such a hot stock right now.
Its price action indicates that this bullish momentum is likely to sustain in Thursday’s trading. In pre-market trading, it was already up by over 6% at the time of writing, and is back above $60. The charts also point to the possibility of bullish sentiment in the day. After the initial rally that pushed it to a high of $67, it started consolidating between $56 and $60. If it holds above $60 when the markets open, then there is probability that it could trade in bullish territory in the day. The first key resistance if it opens the day in bullish territory could be at $67, which is Wednesday’s high.
If it sustains this upwards momentum when markets open, then high potential stocks such as CrowdStrike Holdings could possibly trade in the green all through the day.