CrowdStrike shares soar 80% above IPO price in Wall Street debut
The cybersecurity company makes an impressive debut on Wall Street.
CrowdStrike share price is surging after its debut on Wall Street. The security software vendor’s initial public offering (IPO) is one of the few success stories of 2019.
CrowdStrike finds success with IPO launch
CrowdStrike was founded by former McAfee executive, George Kurtz, in 2011. Kurtz said the cybersecurity company’s success comes from its use of cloud technology.
‘There’s been no Salesforce of security. And we think we’ve taken the right approach and created the right architecture to be that fourth pillar of cloud computing,’ said Kurtz.
The company counts corporations like Amazon as clients. CrowdStrike even led an investigation into the US Democratic National Committee’s server data breach in 2016.
‘Some of the world's largest enterprises, government organizations, and high-profile brands trust us to protect their business,’ said CrowdStrike in its IPO filing.
When the corporation launched its IPO, it was valued at $6.6 billion with shares priced at $34. In contrast to big-name 2019 IPO launches from Uber and Lyft, CrowdStrike has surpassed expectations since going public. Though CrowdStrike’s 2019 revenue doubled to $249.8 million, the corporation still reported a net loss of $140 million in fiscal 2019 because of sales and marketing expenses.
What’s next for CrowdStrike?
CrowdStrike will continue its spending on marketing to expand the corporation's reach. Kurtz believes that the expenses will help CrowdStrike’s share price rise.
‘Our [CrowdStrike‘s] sales and marketing spend has really been focused on capturing market share and delivering our solution into geographies that we haven’t been in and into verticals that we didn’t have the penetration when we first started the company. So we feel comfortable with the unit economics and we feel comfortable with the marketing spend given where we are as a company,’ said Kurtz.
Investors will watch CrowdStrike stock to see if its initial success on Wall Street can continue.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
