IB Net Payout Yields Model

CrowdStrike: Next Strike

CrowdStrike dipped following strong quarterly results, as the stock is still too expensive at over 17x FY21 sales.
The looming venture fund sales will cap stock gains in the short term.
Investors need to assume the stock breaches recent lows and touch the IPO price.
When a company is worth more than 10x forward sales, execution has to be flawless for the stock to rally. In the case of CrowdStrike Holdings (NASDAQ:CRWD), a stock trading closer to 20x forward sales has to virtually print money to reward shareholders. For this reason, my investment thesis remains very negative on this cybersecurity stock despite trading near the lows with the next strike of lockup expiration looming.
Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 


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