CrowdStrike’s sky-high valuation and what it means for cyber stocks

CrowdStrike ($CRWD) is about to report earnings with expectations of roughly 20% revenue growth and strong annual recurring revenue, but the big story is valuation: the stock is trading at around 77x projected free cash flow, almost double the average software peer. That means even a small wobble in growth or guidance could move not just $CRWD, but the whole high-multiple cyber and software space.

In today’s episode of “Breaking News to Trading Moves” we look at who could benefit if CrowdStrike proves the bulls right and who might take a hit if investors decide “priced for perfection” has gone too far.

WINNERS -

Cybersecurity platform leaders

Names: CrowdStrike ($CRWD), Palo Alto Networks ($PANW)

Reason: If $CRWD shows res ...