Why This Cybersecurity Stock Belongs in Every Millionaire-in-the-Making Portfolio
2026-09-30 16:28
•Stefon Walters •The Motley Fool
••••• •••• Axe Cap view
CrowdStrike: Cybersecurity Growth, But Watch the Price
CrowdStrike’s rapid revenue and recurring revenue growth stand out, yet its premium valuation demands caution.
CrowdStrike is growing fast, with revenue up 26% year-on-year and a hefty annual recurring revenue base of nearly $6 billion. That’s a sign of a strong subscription model, which investors generally love for predictable cash flow. The company is well positioned to ride the cybersecurity wave as threats keep evolving and AI integration becomes more important. But the 43x price-to-sales multiple is quite steep. In the South African context, we don’t have a direct JSE equivalent to CrowdStrike’s tech-driven SaaS model, so USD/ZAR becomes a useful lens. A weaker rand can make the stock pricier for local investors, adding currency risk on top of the high valuation. If you’re eyeing long-term exposure to cybersecurity, it’s acceptable to buy but start small and be ready for volatility. This thesis could fail if the broader tech sell-off intensifies or if AI doesn’t deliver the expected competitive edge. this is just our opinion and not financial advice
Initiate a small position in CrowdStrike via offshore or USD/ZAR exposure to hedge valuation and currency risk. Avoid increasing exposure until valuations normalize or the rand stabilizes.
- CRWD
- USD/ZAR
- high valuation could limit short-term gains
- rand weakness adds currency risk to offshore tech exposure
6/10
CrowdStrike is highlighted as a premier cybersecurity stock positioned to outpace the industry's expected 13.8% annual growth rate. The company reported 26% year-over-year revenue growth to $1.47 billion and $5.84 billion in annual recurring revenue. However, the stock trades at a premium valuation of 43x projected revenue, which could limit short-term upside and increase volatility risk.
Our take is based on reporting first published by The Motley Fool.