Will CrowdStrike Be a $1 Trillion Company By 2030?
One of the hottest growth areas for technology investors is cybersecurity. The landscape is rife with applications ranging from combating hackers to preventing fraud. Endpoint security platform operator CrowdStrike (CRWD -0.41%) is a leader in the space, and its stock has handily beaten the S&P 500 over the last several years -- returning nearly 350% since its initial public offering in 2019.
With such an impressive performance, investors may be wondering if the coveted $1 trillion market cap club is in CrowdStrike's future. Let's look at the company's growth prospects and assess whether reaching a $1 trillion valuation by 2030 is reasonable.
CrowdStrike operates across a variety of end-markets within cybersecurity. These include applications such as data protection, threat intelligence, identity protection, cloud security, observability, managed services, IT operations, and endpoint security. According to the company's estimates, these use cases combine for a total addressable market of $100 billion today. However, management expects the market to expand to $225 billion by 2028. The forecasts above undermine just how enormous the cybersecurity market is -- and CrowdStrike appears to be well on its way to dominating it.
