Albert Einstein once said compound interest is the most powerful force in the universe. That means something coming from one of the greatest physicists of all time, and he’s absolutely right. As an investor, I know that few things are more satisfying than watching a stock multiply in value.
With that in mind, I think CrowdStrike (NASDAQ:CRWD) and Snowflake (NYSE:SNOW) have the potential to grow fivefold in the next decade. Here’s why.
1. CrowdStrike
According to IBM, the average cybersecurity breach inflicts $4.2 million in damages, in large part consisting of lost business in the wake of the attack. Unfortunately, digital transformation has made these costly events more common. The rise of cloud computing, the shift to remote work, and the proliferation of connected devices have all given hackers more ways to launch attacks.
To that end, CrowdStrike has become a gold standard in cybersecurity. Its platform protects devices such as desktops and servers, as well as workloads such as cloud services and applications. To do this, CrowdStrike leverages the power of the public cloud to crowdsource massive amounts of data, making its artificial-intelligence models uniquely effective in detecting and preventing threats.
In fact, the International Data Corporation (IDC) recently recognized CrowdStrike as the market leader in endpoint protection. The IDC also named CrowdStrike’s Falcon Complete the best managed detection and response service on the market, citing greater capabilities and a stronger strategy than any rival.
This dominance is further evidenced by strong customer demand. Earlier this year, CrowdStrike became the third fastest software-as-a-service vendor to reach $1 billion in annual recurring revenue, behind only Salesforce.com and Zoom, both of which are CrowdStrike customers.
Looking ahead, CrowdStrike puts its market opportunity at $106 billion by 2025, 96 times its trailing-12-month revenue of $1.1 billion. And management is executing on a strong growth strategy. In the past year, CrowdStrike has launched several new modules — Falcon Horizon, Falcon X Recon, and Falcon Forensics — extending the functionality of its platform. The company also acquired Humio and Preempt Security, adding new modules for log management and identity protection.
Collectively, these make CrowdStrike a more comprehensive solution, reinforcing its best-in-class status. That’s why I think this growth stock could jump fivefold in the next 10 years.
2. Snowflake
Modern enterprises have access to more data than ever before. But digital transformation has multiplied the number of applications businesses rely on each day, and that data is often spread across siloed systems. To resolve this matter, developers have built data pipelines for mobility, data lakes for storage, and data warehouses…
Read More: 2 Growth Stocks With Potential for Fivefold Growth