CrowdStrike (CRWD) fell 7% on Oct. 16 to close at $227.39, yet it has returned 110.0% over six months, versus 9.3% for the State Street SPDR S&P 500 ETF Trust. The article says CrowdStrike sells extra modules onto the same sensor already running on customers' machines, which keeps accounts sticky, and revenue rose 25.80% over the latest three months with $1.61 billion of operating cash flow in its last fiscal year. However, the operating margin is still -2.26%, and the shares trade at 208.33 times expected next-year earnings, a level the author says leaves little room for disappointment over several years. According to the author, the one-day selloff trimmed the valuation only slightly and changed very little.
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