CrowdStrike Holdings Inc. (NASDAQ:CRWD) is among the best software infrastructure stocks to buy according to hedge funds. On Thursday, January 8, the company announced an agreement to acquire SGNL, an identity management startup, for $740 million, according to CNBC. The company believes the acquisition will bolster its position in the Next-Gen Identity Security space, complementing its Falcon platform intelligence. The deal is expected to be closed in the first quarter of FY 2027, and the purchase price i ...

Core Insights - CrowdStrike Holdings, Inc. is a leading player in the cybersecurity industry, offering innovative solutions such as endpoint protection, threat intelligence, and cyberattack response, distinguishing itself with a single platform strategy and Falcon Flex subscription model [1] Financial Performance - For the quarter ending October 2025, CrowdStrike reported earnings per share (EPS) of $0.96, exceeding the estimated $0.93, resulting in an earnings surprise of 2.13% [2][6] - The company's revenue for the same quarter reached approximately $1.23 billion, surpassing the estimated $1.21 billion, reflecting a 22% year-over-year increase [3][6] - Annual recurring revenue (ARR) grew by 23%, reaching $4.92 billion, with $265.3 million in net new ARR added during the quarter [4][6] Market Position and Valuation - CrowdStrike's strong financial performance has attracted investor interest, evidenced by a price-to-sales ratio of 28.03 and an enterprise value to sales ratio of 27.16, indicating a high valuation relative to revenue [5] - The company maintains a solid financial position with a debt-to-equity ratio of 0.20 and a current ratio of 1.81, ensuring liquidity to cover short-term liabilities [5]

Core Insights - Palo Alto Networks is a leading cybersecurity company known for its innovative security solutions, including firewalls, cloud security, and threat intelligence [1] - The company is set to release its quarterly earnings on November 19, 2025, with Wall Street analysts estimating an EPS of $0.89 and revenue of $2.46 billion [2][6] - The stock price has recently declined from a high of $223 in October to $205, raising investor interest in the upcoming financial results [2] Financial Performance - In the previous quarter, Palo Alto Networks reported $2.5 billion in revenue, reflecting a 16% year-over-year increase, driven by a shift from hardware to subscription and service-based offerings [3][6] - The company's backlog grew to $15.8 billion, and annual recurring revenue for next-generation security surged by 32% to $5.6 billion [3] Market Dynamics - Investors are particularly focused on the progress in subscription and recurring revenue offerings in the upcoming earnings report [4] - Commentary on competitive pressures, especially in identity security and secure access service edge (SASE), will be of interest due to increasing competition from rivals [4] Institutional Investor Activity - Institutional investors have been adjusting their positions in Palo Alto Networks, with Banco Bilbao Vizcaya Argentaria S.A. reducing its holdings by 0.5% [5] - Connor Clark and Lunn Investment Management Ltd. acquired a new stake valued at $261,000, while Strive Asset Management LLC increased its stake by 16.6%, now holding shares valued at $358,000 [5][6]