TCW Concentrated Large Cap Growth Fund on CrowdStrike Holdings, Inc.
Thesis
CrowdStrike produced strong quarterly results including 32% year-on-year growth in net new ARR, improving operating margins and 67% growth in free cash flow. Management raised forward guidance as module adoption, retention and pipeline trends remained strong. TCW argues that AI agents increase the attack surface and the need for cybersecurity spending, making advanced AI models an ecosystem opportunity for CrowdStrike rather than necessarily a disruptive threat.
“We remain constructive on shares of both PANW and CRWD.”
Key risks
- Investors have feared that cybersecurity LLMs could disrupt incumbent cybersecurity providers.
- The investment case depends on continued strong module adoption, retention and pipeline conversion.