Today's video focuses on Crowdstrike (NASDAQ:CRWD) and Twilio (NYSE:TWLO). One is a strong leader in the cybersecurity market, and the other is a vital tool for application developers. Both have seen a correction in stock prices, which may be giving long-term investors a buying opportunity. Here are some highlights from the video. 

  1. Both Crowdstrike and Twilio have had some recent red days in the market. Volatility in the market is normal, but some of the bearish sentiment could also be from reports that insiders for both Crowdstrike and Twilio sold shares. Some investors (like me) believe there could be numerous reasons for insiders selling stocks, but others see these occasions as a pure expression of bearish sentiment. An analyst has also recently downgraded Crowdstrike to neutral from buy. 
  2. Crowdstrike stock price has dropped over 10% from its 52-week high closing. Crowdstrike has a strong balance sheet with plenty of cash and short-term investments compared to debt, and it is also a company with strong free cash flow margins of over 40% for the trailing 12 months. 
  3. Twilio stock price has dropped over 20% from its 52-week high closing. Long-term investors could see this as a buying opportunity. This company reported 67% year-over-year growth in revenue, over 240,000 active customers, and a strong balance sheet with plenty of cash and short-term investments compared to debt.

Click the video below for my full thoughts and analysis. 

*Stock prices used were the closing prices of Sept. 13, 2021. The video was published on Sept. 13, 2021.
 


 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.