Three big hitters stepped up this week for earnings announcements:
CRWD 8/31
ASAN 9/1
DOCU 9/2
CRWD: Crowdstrike had another very solid call on Tuesday and remains a phenomenal company and a great LT investment, though the laws of big numbers are catching up with them on their revenue growth, though they are still one of the top 3 revenue growth wise in our portfolio. I won’t rehash all the numbers that you can read in their earnings release, but honestly I have been waiting for several quarters for them to surprise me more to the upside and I expected more from this earnings, but the results this quarter were more of the same, which is to say incredible, but not spectacularly, incredible! As they say, its tough being at the top and the unrealistic expectations put on you are often impossible to meet. I am not adding to CRWD after the recent stock run up, but that is not an indicator at all of my conviction in this company and their incredible and continued execution. I will continue to hold the core stock investment at around 12% of the portfolio. UPST and DDOG will become my top two holdings/investments, due in no small part to their recent quarterly reports and incredible acceleration, with CRWD rounding out my top 3. I do like the stability of the stock price yesterday and today, in spite of a small drop in their revenue % growth rate…small wonder, as there are a LOT of analysts catching up with upgrades to the stock price target, though that’s because the stock is already above their prior targets! (wouldn’t it be nice if they did that for us in a more timely manner?) Nice to see them catching up. 🙄 One shining light in Crowdstrike’s favor (among many) from their earnings results Tuesday was excellent customer adds, up 81% q/q, which can be a great indicator of future growth. That said, I’ve thought and expected that same reaccelerating of growth for several quarters in a row now and am still waiting. Regardless, CRWD remains one of the fastest horses in the stable, arguably the top cyber security company in the world and an investment that just keeps on giving (note recent massive stock price surge to new ATH’s). We started buying this company in the mid $40s back in 2019. Today it trades at $273…more than a 6x return already with (I believe) much more room to grow.
