Quick Analysis of Crowdstrike - should we take profits?
Quick Analysis Series
This is the recent chart of Crowdstrike CRWD 0.00%↑
As we can see, the price of the stock has grown 160% from a year ago. Is this a good company to invest in? Should we take profits, hold, or add to the positions?
Recent Performance of CRWD
Observations:
Revenue has grown from $53M (2017) to $2,241M (2023).
The company has yet to break even - and continues to make a loss.
Despite the growing revenue, the business operating losses have been growing too. This implies that the growth in their expenses exceeds that of the revenue growth.
The asset was recently valued at $5,027M with a total liabilities of $3,539M.
The latest Free Cash Flow (FCF) is $864M.
Retained earnings stood at -$1,148M.
Retained Earnings
This is the difference between profits and Retained Earnings by Investopedia.
Profits give a lot of room to the business owner(s) or the company management to use the surplus money earned. This profit is often paid out to shareholders, but it can also be reinvested back into the company for growth purposes. The money not paid to shareholders counts as retained earnings.
Quick Analysis
For CRWD, I prefer to monitor the company for now. There is both potential and market interest. However, the business continues to run a loss. I will need the losses to be reduced and would recommend a close eye on the debts - especially in such a higher interest rate environment.
For those of us who are holding shares, we can consider taking some profits and setting a “stop loss” that is above our costs. This helps us to preserve our profits. This is a quick analysis and more needs to be done to better qualify the business - over a longer period.
Are there any other businesses that you will like for me to do a quick analysis on?
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- KYHBKO·01-09Note that $CrowdStrike Holdings, Inc.(CRWD)$ has been making profits for the last 3 quarters. thus, it looks to be turning things around. Thanks, @SirBahamut for sharing this.LikeReport
- Ah Huat Kopi·01-08Nice article!1Report