From NASDAQ: 2024-06-18 05:52:00

The S&P 500 represents 80% of U.S. equities by market cap and consists of 500 companies. To join, a company needs a market cap above $18 billion, recent profits, and sufficient liquidity. The committee added CrowdStrike to the index alongside GoDaddy and KKR, removing Robert Half, Comerica, and Illumina to make room.

CrowdStrike specializes in endpoint security, a growing market with a 13% expected annual growth rate through 2029. Over half of the Fortune 1000 use CrowdStrike’s platform, benefiting from its sticky services and a land-and-expand strategy. The company receives over a trillion signals daily for AI training and secures over 100% net revenue retention.

Wall Street analysts see potential growth for CrowdStrike, with 47 out of 50 rating the stock a buy. The stock’s enterprise-value-to-sales ratio is over 27 times, up from around 11 times in 2023. While there’s strong revenue growth, investors may want to consider the stock’s valuation relative to its peers in the AI and cybersecurity sector.



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