Why Palantir, CrowdStrike, and Cloudflare Stocks Went Parabolic Tuesday

Motley Fool2022-03-23

KEY POINTSOn Monday afternoon, President Biden reiterated a warning that Russia could target U.S. companies for cyberattacks.On Tuesday morning, Biden's assertion that companies need to do more to ...

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Comments

Kel9670ong
2022-03-31
Kel9670ong
No comment
Bspn
2022-03-24
Bspn
Ok
GuSen
2022-03-23
GuSen
See who blinks first!
kenlim45
2022-03-23
kenlim45
👍
SK19
2022-03-23
SK19
💪💪💪
Jason_LSE
2022-03-23
Jason_LSE
The author seem to have same view as Ark invest. They divested 100% of PLTR. What should regular investors do ? Hmmm..[Thinking]

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(Albeit, it seems that hack actually began back in January, and as noted in a Wired article published Tuesday, the Lapsus group appears most likely to be based in South America.)Now whatBetween President Biden's warning and the news of the cyberattack on Okta, investors are bidding up shares of Palantir, CrowdStrike, and Cloudflare -- and I think that's a perfectly understandable reaction. That being said, I do not agree that all cybersecurity stocks are created equal -- or that these three stocks are equally good bets. Indeed, I kind of suspect that none of them may be good bets.Consider: Currently, none of Palantir, CrowdStrike, or Cloudflare are profitable by generally accepted accounting principles (GAAP), and Cloudflare isn't even generating positive free cash flow (FCF). Palantir and CrowdStrike do generate substantial free cash flows -- $321 million and $462 million, respectively, over the past 12 months. But even so, their market caps are so high that I fear even positive FCF doesn't make either of them a good investment.Of the three, CrowdStrike sports the highest market capitalization -- $50 billion, which works out to a valuation of 108 times free cash flow. Palantir stock is only slightly more palatable with a $26.8 billion market cap and a valuation of 83.5 times FCF. Cloudflare, with a $37 billion market cap -- but with no profits or free cash flow to undergird that valuation -- seems to me the riskiest stock of the three.On balance, I have to conclude that all three of these cybersecurity stocks cost too much to justify an investment at this point, no matter what the headlines say today.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":9013201241,"gmtCreate":1648730752684,"gmtModify":1676534387073,"author":{"id":"3578468158955348","authorId":"3578468158955348","name":"Kel9670ong","avatar":"https://static.tigerbbs.com/bd86c42e207fbd94e7f8877a29457d71","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3578468158955348","idStr":"3578468158955348"},"htmlText":"No comment","listText":"No comment","text":"No comment","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9013201241","repostId":2221095812,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9037888772,"gmtCreate":1648079006092,"gmtModify":1676534300510,"author":{"id":"3582502134655895","authorId":"3582502134655895","name":"Bspn","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":3,"crmLevelSwitch":0,"authorIdStr":"3582502134655895","idStr":"3582502134655895"},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9037888772","repostId":2221095812,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9037168988,"gmtCreate":1648050998076,"gmtModify":1676534297930,"author":{"id":"3581847021927100","authorId":"3581847021927100","name":"GuSen","avatar":"https://static.tigerbbs.com/1b70044f21c62e929a7c4b5157b5a273","vip":1,"crmLevel":4,"crmLevelSwitch":0,"authorIdStr":"3581847021927100","idStr":"3581847021927100"},"htmlText":"See who blinks first!","listText":"See who blinks first!","text":"See who blinks first!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9037168988","repostId":2221095812,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9037977392,"gmtCreate":1648017040623,"gmtModify":1676534293523,"author":{"id":"4087993342728370","authorId":"4087993342728370","name":"kenlim45","avatar":"https://static.tigerbbs.com/041f7cb113fb34ffb16e6418486502fe","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"4087993342728370","idStr":"4087993342728370"},"htmlText":"👍&nbsp;","listText":"👍&nbsp;","text":"👍","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9037977392","repostId":2221095812,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9037945719,"gmtCreate":1648014323107,"gmtModify":1676534293252,"author":{"id":"3577755293052640","authorId":"3577755293052640","name":"SK19","avatar":"https://static.tigerbbs.com/ee6b25332525b16399562f21677fa1cd","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3577755293052640","idStr":"3577755293052640"},"htmlText":"💪💪💪","listText":"💪💪💪","text":"💪💪💪","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9037945719","repostId":2221095812,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9037926697,"gmtCreate":1648009584727,"gmtModify":1676534292625,"author":{"id":"4095252946433820","authorId":"4095252946433820","name":"Jason_LSE","avatar":"https://static.tigerbbs.com/60e2530d54f2a0d278bad7b3284cdef5","vip":1,"crmLevel":6,"crmLevelSwitch":0,"authorIdStr":"4095252946433820","idStr":"4095252946433820"},"htmlText":"The author seem to have same view as Ark invest.&nbsp; They divested 100% of PLTR.&nbsp;What should regular investors do ? Hmmm..[Thinking]&nbsp;","listText":"The author seem to have same view as Ark invest.&nbsp; They divested 100% of PLTR.&nbsp;What should regular investors do ? Hmmm..[Thinking]&nbsp;","text":"The author seem to have same view as Ark invest. They divested 100% of PLTR. What should regular investors do ? Hmmm..[Thinking]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9037926697","repostId":2221095812,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":180,"commentSize":24,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2221095812"}