What happened

Shares of endpoint online security specialist CrowdStrike Holdings (CRWD 1.63%) were down 12.5% in September 2021, according to data provided by S&P Global Market Intelligence. However, even when allowing for the short-term tumble, the stock was up a whopping 72% from the same period in 2020.

Three people using laptops in a cafe.

Image source: Getty Images.

So what

Given the epic rise since the start of the pandemic, CrowdStrike's most recent breather makes sense. There was no specific financial news coming from the company in September that caused the downturn.

However, a confluence of macroeconomic factors was the likely catalyst. Ten-year Treasury yields increased back toward 1.5% (higher interest rates decrease the long-term value of a company's profits); the U.S. government could be headed for a default on its debt if the debt ceiling isn't raised in October; and worry over possible global fallout linked to Evergrande, one of China's largest real estate developers, also weighed on some stocks.

Now what

In spite of some of the recent concerns that have cropped up with the economy, CrowdStrike's long-term growth trajectory remains intact. At the end of August, it reported a 70% year-over-year increase in annualized recurring revenue (ARR) to $1.34 billion and a free cash flow profit margin of 22% -- a very healthy rate of profitability given how heavily this company is investing in development of new product features and sales and marketing.

The pandemic has altered the makeup of the workforce, turning millions of employees the world over into remote workers. Given this and organizations' continual migration to cloud-based operations, a new breed of security software is needed. CrowdStrike has risen to the occasion and still has no shortage of opportunities. During its latest investor presentation, management estimated its total addressable market is worth $36.5 billion a year in global spending as of 2021 and will expand to $43.6 billion by 2023.

Paired with its robust revenue growth, it's no wonder investors have run up CrowdStrike stock's valuation to an "expensive" 48 times trailing 12-month sales. Given the premium price tag, expect more volatility ahead, but a fluctuating stock price won't change the fact that CrowdStrike is a top name in the cybersecurity industry right now.