In June, the CPI increased year over year by 5.4%, the biggest increase since Aug. 2008. As inflation pressures start showing more durable than previously expected, market volatility might spike in the short term.
With the Fed highlighting its support for the economy by keeping low-interest rates in its most recent monetary policy to Congress, a small pullback caused by the inflation report might prove to be an opportunity for smart investors.
If you have $5,000 and you want to invest, and don’t need the money for bills, then the following stocks can make you richer in what is left of 2021 and beyond.
Cloudflare is a top edge-based content delivery network company and a cybersecurity firm. The demand for their edge computing and security services are rising due to the greater adoption of cloud-based architectures.
The company’s total addressable market (TAM) is thought to expand from $72 billion last year to $100 billion going into 2024. The company’s freemium strategy has proven to be very successful. Cloudflare gives its CDN services to users and businesses for free and only charges if they want to upgrade to get premium features.
Since 2016, the company has managed to grow its revenue every year by around 50%. Their dollar-based net retention was 123% in Q1, which implies the same customers spent 21% more than the previous quarter. This metric shows the success of the company’s freemium-and-upgrade model.
CrowdStrike Holdings has benefited greatly from greater demand from cybersecurity services due to covid-accelerated digitization programs. Most of the changes in workforce behavior will continue even in the post-covid era.
With its real-time protection called CrowdStrike Falcon and a software-as-a-service (SaaS) model, the company is well-positioned to get a large share of the global cybersecurity market. In turn, the market is estimated to expand from $217.9 billion this year to $345.4 billion going into 2026. Indexing over 6 trillion events every week, CrowdStrike Falcon is getting even more effective due to better network effects.
CrowdStrike reported a 74% y/y increase in annual recurring revenue (ARR) to $1.19 billion. And they have been quite successful in getting new customers, as shown by the 82% y/y increase in customer subscriptions to 11,420 at the close of Q1. They are also guiding for a 54% y/y jump in fiscal 2022 revenue.
Author: Steven Sinclaire