CrowdStrike Is One of My Largest Holdings and Trading Near Its All-Time High. Here's Why I'm Not Buying More Shares Right Now.
The timing of an investment matters, even for great companies.
Overview
It has been a great year for cybersecurity company CrowdStrike (NASDAQ: CRWD), with its stock up 85% year to date. It's now one of the most valuable public companies in the world, with a market cap of over $220 billion.
I began investing in CrowdStrike shortly after its June 2019 initial public offering, and it has been one of my best investments since. But despite its strong performance and its hovering near an all-time high, there's one key reason I'm avoiding the stock for now: its valuation.
Details
Before we dive into valuation, let's take a peek at how CrowdStrike's business has been performing lately. It's been on an impressive run -- in its recent quarter (ended April 30), it set company records for cash flow from operations ($591 million) and free cash flow ($468 million).
Source
Originally published at www.fool.com.