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Why CrowdStrike Stock Jumped on Wednesday

By Daniel Sparks – Oct 13, 2021 at 4:24PM

Key Points

  • The company is cozying up with Alphabet's Google Cloud and other important security and information technology companies.
  • The well-timed product announcements will help the cybersecurity company keep up its momentum.
  • CrowdStrike's revenue grew 70% last quarter.

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Investors love the cybersecurity company's new product announcements and partnerships.

What happened

Shares of cybersecurity specialist CrowdStrike Holdings (CRWD -4.57%) jumped on Wednesday. At the close, the stock was up 7%.

The growth stock's gain comes as the company unveils a list of new services and features ahead of its CrowdStrike Investor Product Briefing today.

A chart showing a stock price rising

Image source: Getty Images.

So what

On Wednesday morning, CrowdStrike unveiled Falcon XDR, a service that extends the company's endpoint detection and response to work across its entire security stack in real time. "Falcon XDR provides security teams with the data and tools to respond, contain and remediate sophisticated attacks faster," CrowdStrike said in a press release. The company also announced CrowdXDR Alliance, a coalition made up of security and information technology organizations. Among the key partners are Alphabet's Google Cloud, Okta, ServiceNow, and more.

In addition, CrowdStrike announced Falcon FileVantage, which monitors crucial files and systems with modernized workflow policies. 

There were a handful of other product announcements from the company, available to view in their press release archive.

Now what

CrowdStrike's new products aim to help it increase its lead in the modern endpoint security market.

As the largest cloud-native endpoint security offering, the company has been growing incredibly fast. Its fiscal second-quarter revenue soared 70% year over year. The company's aggressive product expansion represents management's attempt to keep up its momentum and capture as much of this market opportunity as it can.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), CrowdStrike Holdings, Inc., Okta, and ServiceNow, Inc. The Motley Fool has a disclosure policy.

Stocks Mentioned

CrowdStrike Stock Quote
CrowdStrike
CRWD
$118.33 (-4.57%) $-5.67
Alphabet Stock Quote
Alphabet
GOOGL
$99.48 (-0.96%) $0.96
ServiceNow Stock Quote
ServiceNow
NOW
$392.26 (-4.99%) $-20.61
Alphabet Stock Quote
Alphabet
GOOG
$99.87 (-0.95%) $0.96
Okta Stock Quote
Okta
OKTA
$61.94 (-4.83%) $-3.14

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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