The stock market extended losses on Wednesday as the tech-heavy index fell 1.2% to 14,592. S&P 500, on the other hand, dropped 0.8% to 4,705.
Meanwhile, new jobs data from Bureau of Labor Statistics showed signs of cooling US labor market. At the end of November, there were 8.79 million job openings, the lowest level since March 2021.
Tweet of the Day
David Sharek’s Top Ten Growth Stocks for 2024
— SchoolofHardStocks (@SchoolHardStock) January 3, 2024
Chart of the Day
Here is the one-year chart of CrowdStrike (CRWD) as of December 13, 2023, when the stock was at $252.
Cybersecurity is a business necessity, and CrowdStrike is one of the industry’s fastest growing companies that is capable of defending data from large scale attacks. Last quarter, CrowdStrike delivered another strong quarter with profits up 105% on a 35% rise in revenue.
In last quarter’s earnings call, the company’s management said cleaning up a cybersecurity breach can cost more than $100 million. That is a big number. Just this month, it was announced that clothing manufacturer, VF Corp, had a security breach that affected the company’s Van’s ecommerce business. Then, Comcast had a breach earlier this week and hackers got customer information including usernames, passwords, date of births and the last 4 digits of Social Security numbers.
Cybersecurity continues to be in strong demand, and CrowdStrike is one of the fastest growers in the industry. However, the shares are already at our 2024 Fair Value, and CrowdStrike is on a parabolic move. The only negative here is CrowdStrike has been on a nice run higher, and may need to simmer down.
CRWD is part of the Aggressive Growth Portfolio and Growth Portfolio.
