CRWD bullish call by Meet Kevin

CRWDBullunverifiable

“I think their growth rates for annual recurring revenue could end up exceeding 50, 60, maybe even 70%.”

Thesis at the time

Strongly Bullish

Kevin is strongly bullish on CrowdStrike, arguing that AI-driven cyberattacks (the 'agentic swarm') are creating an arms race that will structurally boost cybersecurity spending, and that Wall Street's growth estimates for CrowdStrike's ARR are far too conservative. He personally holds the stock and believes it deserves a much higher valuation than current Street numbers imply.

Key arguments

CrowdStrike raised ARR growth guidance to 34%, beating expectations by double digits
AI adoption increases endpoints and cheaper open-weight models increase attack surface, creating a self-reinforcing cycle of more attacks and more security spending
Falcon Flex/Falcon Shield revenue is growing 100%+ and could mask true underlying growth
Data network effects (more customers → more data → better protection → more customers) create a strong moat

Counter-arguments acknowledged

Stock trades at a very high PEG (~8x) versus Wall Street's ~20% EPS growth estimate, making it look expensive if consensus growth proves correct
Company only recently became consistently profitable, adding valuation risk

Hedges and caveats (from the video)

Questions about Nvidia's ability to utilize balance sheet to generate extra revenues
Sustainability of AI rally may depend on future cloud service provider spending and Anthropic developments
Commenter suggests this could be the last AI rally before companies realize they're losing money on AI investments
Host acknowledges uncertainty about whether this marks the start of 'AI rally 2.0'