The largest IT outage in history, an SEC/DOJ investigation, and a renewal cliff the market hasn't priced into Wall Street's most expensive cybersecurity stock.
Hello Great Read! Question for you as the IGP Paradox is bullish on this company. With revenue growth decelerating from 36% to 22% and FCF margins moving away from management targets, how can a forward P/E of ~95x be defended when competitors like SentinelOne are growing faster (32%) and achieving profitability at a significantly lower valuation?
Really sharp analysis on the contract timing lag. The fact that prepaid multi-year deals create a buffer before churn shows up is something most people miss when looking at retention rates right now. The analogy about buying a house with a free security system then paying for a second one captures Microsofts bundling advantage better than alot of technical explanations Ive read.
I think also the interesting thing with Cybersecurity companies is it is a truly a zero fail mission. One major failure (like the BSOD issue) and your stock is going to sell off dramatically.
Hello Great Read! Question for you as the IGP Paradox is bullish on this company. With revenue growth decelerating from 36% to 22% and FCF margins moving away from management targets, how can a forward P/E of ~95x be defended when competitors like SentinelOne are growing faster (32%) and achieving profitability at a significantly lower valuation?
Also here is The IGP Paradox take on CRWD! Let’s discuss. https://igpparadox.substack.com/p/igp-paradox-4?r=7dooze&utm_medium=ios
Great write up. I will definitely be paying attention to you articles moving forward.
Thank you!
Really sharp analysis on the contract timing lag. The fact that prepaid multi-year deals create a buffer before churn shows up is something most people miss when looking at retention rates right now. The analogy about buying a house with a free security system then paying for a second one captures Microsofts bundling advantage better than alot of technical explanations Ive read.
I think also the interesting thing with Cybersecurity companies is it is a truly a zero fail mission. One major failure (like the BSOD issue) and your stock is going to sell off dramatically.
Thank you!