Perhaps Software Is Not Dead ( CRWD Q1 FY1/25 Earnings Review)
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Delicious!
by Alex King
This is what software experts are saying on Twitter / X right now.
These folks are fast learners. Software experts today, gamma squeeze experts yesterday, and rates bros last week. Impressive.
They do have something of a point though, because a whole bunch of enterprise software stocks peaked in February this year and have slowly dumped since. Here, for instance, is our Inner Circle "High Beta" model portfolio, total return since inception on 17 March 2023. Still nicely ahead of the S&P500 and the Nasdaq-100, but you can see that Q1 peak and the dump since then.
So is it true? Is it all over for software? Is Jensen the End Of History And The Last Man?
Well, maybe, but probably not. We've been looking over the software names we cover lately and cybersecurity is certainly standing out. Two such companies have seen revenue growth acceleration in Q1 of their FY1/25 - the first is SentinelOne ($S) and the second is CrowdStrike ($CRWD). One quarter's acceleration does not a reversal make, but it's an important step. Below you can see CRWD's headline numbers - after the paywall we go on to look deeper into the numbers, the valuation, our stock chart, rating and price targets.
Headline Financials
