CrowdStrike (CRWD)
CrowdStrike (NASDAQ:CRWD) is a cybersecurity firm on the rise, and the company has undoubtedly come a long way. IDC said CrowdStrike was the largest player in the Worldwide Endpoint Security market in 2022, even outpacing Microsoft (NASDAQ:MSFT). In Q4 2023, Forrester, an IT research and consulting firm, also named CrowdStrike, a leader in the space.
The cybersecurity firm specializes in cloud-based endpoint protection and threat intelligence services. Its comprehensive platform leverages artificial intelligence, behavioral analytics and threat intelligence to detect and prevent breaches. CrowdStrike’s comprehensive suite of solutions has led to its meteoric rise. The company’s Q4 earnings underscored how a cybersecurity firm could grow even during economic uncertainty. In particular, CrowdStrike beat earnings Wall Street estimates and saw top-line growth in 2023, reaching 54% on a year-over-year basis, while revenue for the quarter increased 45% year-over-year.
CrowdStrike’s shares have climbed more than 140% by the end of 2023. In 2024, the cybersecurity firm’s share price has risen more than 22%. As enterprises continue to pursue digital transformation plans, CrowdStrike will definitely be a beneficiary.
Manhattan Associates (MANH)
Investors traumatized by post-COVID supply chain bottlenecks that created enormous cost pressures for many companies might be interested in Manhattan Associates (NASDAQ:MANH). The company is a leading provider of software solutions for supply chain management, inventory optimization and omnichannel commerce. Three of Manhattan’s solutions include Omnichannel Commerce, Supply Chain Execution and Supply Chain Planning. Omnichannel Commerce helps companies connect with their suppliers better while automating the purchase order process. Supply Chain Execution tools allow companies to manage their warehouses or shipyards and understand which products are where and which transportation vehicles are in use. The last solution offers a layer of data analytics on the first two solutions, providing companies with demand forecasting capabilities.
Manhattan Associates also had a strong end to 2024. The company beat Wall Street’s revenue estimates, and revenue for the full year rose 22% to $929 million. Manhattan Associates’ management team also provided rosy guidance for 2024. Supply chain solutions will continue to be in demand, especially as two critical canals, the Panama Canal and the Suez, have suffered blockages. Manhattan Associates’ shares rose 77% in 2023, and the stock could rally even more as investors allocate capital to companies bringing digital transformation to supply chains globally.
Palantir (PLTR)
Palantir’s (NYSE:PLTR) artificial intelligence solutions are definitely gaining traction. In the company’s third quarter earnings report, the company’s “U.S. Commercial business segment” increased revenue figures by 37% on a year-over-basis driven by demand for Palantir’s Artificial Intelligence Platform. The data analytics firm’s AIP can deploy commercial and open-source large language models onto internally held data sets and, from there, recommend business processes and actions. Similarly, in their fourth quarter report, not only did financial figures come above Wall Street estimates, but CEO Alex Karp noted there was strong demand for AIP.
This point excited investors as Palantir’s shares popped 19% during the after-hours trading session. Many Wall Street analysts were concerned that Palantir’s AI solutions were only hype, but that was not the case based on customer demand.
While Palantir’s valuation is certainly looking stretched, the company’s prospects could widen as AI solutions continue rising in popularity.
On the date of publication, Tyrik Torres did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Tyrik Torres has been studying and participating in financial markets since he was in college, and he has particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.