Yahoo Finance CrowdStrike (CRWD) Eyes Latin America With New Distribution Deal
CrowdStrike Holdings, Inc. CRWD is making strategic moves to bolster its presence in the Latin American market through new partnerships with leading technology distributors. The cybersecurity giant has joined forces with Ingram Micro, M3Corp and Tecnología Especializada Asociada de México (TEAM Mexico) to accelerate the adoption of its AI-native CrowdStrike Falcon platform across the region.
The new distribution deals are aimed at expanding the reach of CrowdStrike's advanced cybersecurity solutions in Mexico, Brazil, and the broader Latin American market. These strategic partnerships should enable local businesses to access the Falcon platform, known for its AI-driven capabilities in detecting and stopping breaches. By leveraging the extensive partner networks and expertise of Ingram Micro, M3Corp and TEAM Mexico, CrowdStrike aims to drive vendor consolidation and enhance cybersecurity defense across the region.
Latin America has seen a significant increase in cyber threats, particularly from eCrime actors employing sophisticated techniques to bypass traditional cyber defenses. The need for unified cybersecurity solutions has never been greater, as fragmented point products often fail to provide comprehensive protection and can increase operational costs and complexity. CrowdStrike’s Falcon platform offers a unified approach, simplifying cybersecurity management while enhancing protection across all key attack surfaces.
The move is expected to not only boost CrowdStrike's presence in Latin America but also enhance the overall cybersecurity posture of businesses in the region. The latest distribution agreements align with CrowdStrike's broader strategy of driving global market leadership through strategic partnerships and advanced cybersecurity solutions.
CrowdStrike is riding on a strong and innovative portfolio with the growing adoption of its Falcon platform. Shares of the company have rallied 51.7% year to date, outperforming the Zacks Internet - Software industry’s growth of 14.7%.
CrowdStrike Price and Consensus
CrowdStrike price-consensus-chart | CrowdStrike Quote
Strengthening Portfolio With Partnerships
CrowdStrike has partnered with several technology companies, including Hewlett Packard Enterprise HPE, NVIDIA NVDA and Cloudflare NET, to enhance its product capabilities.
CrowdStrike collaborated with Hewlett Packard Enterprise last week to integrate HPE GreenLake and OpsRamp AIOps with its Falcon cybersecurity platform. The company’s partnership with NVDA allows it to merge the Falcon platform data with NVIDIA's GPU-optimized AI pipelines and NIM microservices, enabling their shared customers to seamlessly create custom and secure generative AI models.
The partnership between CrowdStrike and Cloudflare is focused on integrating Cloudflare One Zero Trust protection solution with CRWD’s Falcon Next-Gen SIEM to improve the security of their joint channel partners.
Robust portfolio strength and crucial partnerships are driving CrowdStrike’s financial performance. The company’s non-GAAP earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 15.8%.
The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $4 billion, indicating year-over-year growth of 30.9%. The consensus mark for fiscal 2025 non-GAAP earnings is currently pinned at $3.98 per share, suggesting growth of 28.8% year over year.
Conclusion
CrowdStrike's strategic push into Latin America is a timely move, given the region's growing digital landscape and increasing cyber threats. By partnering with established distributors, CrowdStrike can tap into their extensive networks and local market expertise, accelerating the adoption of its Falcon platform.
CRWD’s diversified product portfolio, strong partner base and expanding clientele make it an important player in this sphere. These strengths, coupled with its solid financial performance, position the company as a promising opportunity for long-term growth.
Despite its strengths, CrowdStrike’s near-term prospects might be hurt by softening IT spending. The still-high interest rates and protracted inflationary conditions have negatively impacted consumer spending. Meanwhile, enterprises are postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues.
Moreover, CrowdStrike’s valuation looks stretched at the current level, as reflected by the Value Score of F. We note that CRWD currently has a forward 12-month P/E ratio of 89.42. This level compares unfavorably to the industry’s average of 34.56. Hence, it would be prudent for investors to wait for a better entry time.
CrowdStrike has a Zacks Rank #5 (Strong Sell) at present.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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