Did the US-Iran Conflict Drive Crowdstrike Up by 9%?


Jan. 6 2020, Updated 6:16 p.m. ET

The US-Iran tensions are reaching increasing proportions. Obviously, oil and petroleum products would be directly impacted if the violence escalates. There could be an indirect impact on other sectors too—especially in technology companies.

In my opinion, in addition to enterprise solutions, 2020 could see an increased focus on different aspects of technology. Opportunities for cybersecurity companies and tech companies eyeing defense contracts could also rise.

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Crowdstrike ups revenue estimates

Cybersecurity specialist Crowdstrike (CRWD) has been on a bull run after the US-Iran tensions began. Since the market opened for trading, the stock has risen 9%. Crowdstrike stock quoted at $55.43 half an hour before the market closed today.

Crowdstike also revised its revenue forecast for fiscal 2020 to $465 million–$468 million from its expected revenue of $450 million. Could the threat of a cyber attack be the reason behind Crowdstrike’s uptick?

In a recent broadcast of CNBC’s Mad Money, Crowdstrike CEO George Kurtz spoke to Jim Cramer. Kurtz noted that his company could end up as one of the pillars of the cloud technology sector.

I believe that Crowdstrike’s fundamental model could play a pivotal role in the current US-Iran crisis. Kurtz noted that until now, the focus of his company was “keeping companies secure and stopping breaches.” In the event, the United States must defend against cyberattacks from Iran, Crowdstrike could rise and play an increased role in national security. Such a scenario could open the possibility of an exponential rise in Crowdstrike’s valuation.

Crowdstrike deploys cloud-based artificial intelligence to track threats. Crowdstrike programs the AI technology with the specifics of past attempts to breach a network. Based on these inputs, Crowdstrike’s Falcon program can track loopholes in the system and eliminate any potential vulnerability.

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Twitter focused on US-Iran conflict

Business Today reported that Twitter’s (TWTR) search results about “World War 3” are flooding the social media platform. Plus, the BBC reported a string of tweets between the US and Iran. The social media platform is becoming the primary source to spread information about the burgeoning US-Iran conflict.

News18.com reported that President Trump would post “updates on the war with Iran” on his Twitter account. The Washington Post reported that Twitter is also the preferred platform for anti-war celebrities to try to calm the US-Iran conflict by making direct statements to the leaders in Iran.

President Trump led a tumultuous start to 2020 by taking a stand against Iran. Further, Iran vowed to retaliate. Cyberwarfare is among one of the possible threats facing the US. CNBC discussed the Middle Eastern country’s potential to launch a cyberattack amid other forms of retaliation. I believe the US-Iran tensions could create a platform where technology companies could make their presence felt.

Wrapping up

Microsoft (MSFT) made waves when it won the $10 billion Pentagon deal. In response, Amazon (AMZN) contested the outcome of the JEDI contract. The crux of the JEDI deal was to migrate the United States’ defense data to the cloud.

Perhaps Microsoft and Amazon could anticipate a new series of defense projects to prevent further cyberwarfare. Today, Mohit Oberoi’s Could Iran Tensions Impact US Stock Market Investors? discussed the macroeconomic impact of the US-Iran tensions and investors in the US stock markets.


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