A stock to evaluate before the market cap grows by 1,370%

In recent years, the technology sector has seen some companies reach levels of market capitalization incredible, superior to one trillion dollars. Giants like Microsoft, Apple, Nvidia, Alphabet And Amazon have achieved (and surpassed) this prestigious status, supported by the boom in artificial intelligence. However, there is a new contender that could join this exclusive group, a company focused on IT security which is rapidly gaining ground: CrowdStrike.

Let’s explore why this is below stock must be bought before the market cap grows by 1,370%.

CrowdStrike

CrowdStrike has seen unstoppable success thanks to its leadership in endpoint security and a broad range of security products. The company has long adopted theartificial intelligence to detect and repel the most advanced threats, with a system that becomes increasingly intelligent with each attack faced. Therefore, AI is deeply integrated into the company’s DNA, making it a formidable contender in the cybersecurity market.

With a market capitalization current less than 73 billion dollars, it might seem unrealistic to think that CrowdStrike could join the trillion-dollar club. For the company it would mean a market cap growth of 1,370%. However, the growing need to defend against AI-powered cyber attacks could give the company the push it needs to achieve this goal.

The Falcon platform is at the heart of CrowdStrike’s success. It uses advanced artificial intelligence and machine learning to stop threats in seconds and prevent future attacks. This system is trained on over 2 trillion threat events per day, constantly improving over time. The platform has proven its effectiveness, with annual recurring revenue up 34% to $3.44 billion, and expanding operating margins that drove diluted earnings per share (EPS) to grow of 102%.

The path to $1 trillion

Despite its success and impressive growth, reaching a $1 trillion market capitalization takes time and persistence. CrowdStrike has been recognized as a Leader in Gartner’s Magic Quadrant for Endpoint Protection and has received numerous awards for its strategy and execution capabilities. However, maintaining a steady growth rate will require expanding your customer base and introducing new products and services.

Fortune Business Insights predicts a compound annual growth rate by 14% for the manufacturing sector IT securityuntil 2030.

To reach the $1 trillion goal, CrowdStrike would need to generate revenues of approximately $42 billion per year, assuming a constant price-to-sales ratio of 24. If the company can maintain a growth rate of 33% per year year, he could reach his goal by 2033. However, a more realistic growth rate of 27% could lead to the milestone being reached by 2035.

The growing demand for cybersecurity, with damage from cyberattacks expected to hit $10.5 trillion by 2025, presents CrowdStrike with a significant opportunity. If the company can capture even a portion of this rapidly growing market, it could join the trillion-dollar club.