CrowdStrike Holdings, Inc. (CRWD) has made a significant upward climb since March of 2020, outperforming the S&P 500 and rising by approximately 235% compared to the S&P’s gain of about 14.5%. The cybersecurity technology company’s impressive growth has made it a very profitable year.

CrowdStrike offers cloud-based solutions for finance, retail, healthcare, and public sectors, including threat intelligence and cyberattack response services. While many technology companies have seen growth during the coronavirus pandemic, CrowdStrike appears to be exceptionally fortunate that the pandemic’s influence on businesses moving more toward remote work and cloud-based solutions provides an extra boost to 2020 financial performance.

Underwhelming Response from Hedge Funds and Institutions

Looking at third quarter activity by the top hedge funds, the aggregate 13F shares held decreased to about 49.0 million from 55.1 million, a decrease of approximately 11.2%. Of the hedge funds, 37 created new positions, 47 added to existing holdings, 34 exited, and 69 reduced their stakes. Institutions were also selling, decreasing their aggregate holdings by about 2.1%, to approximately 132.7 million from 135.5 million. It’s not surprising that CrowdStrike lost some traction on the WhaleWisdom Heat Map, sliding to a ranking of 30 from 15.

(WhaleWisdom)

Analysts See Growth Potential

Analysts are raising price targets after recognizing CrowdStrike’s growth potential. Subscription revenue was up about 87%, and the technology company has been able to generate positive operating and free cash flow. CrowdStrike forecasted revenue ranging from $245.5 to $250.5 million in the fourth quarter. The Royal Bank of Canada (RBC) raised its price target on the stock from $170 to $180, rating it an outperform. Meanwhile, Jefferies Financial Group rated CrowdStrike a hold. It raised its price target from $150 to $160, noting new customer additions and increased usage.

Encouraging Multi-year Estimates

Analysts anticipate that earnings per share will rise between 2021 and 2024, with a peak of approximately 70% year over year growth in 2023 to $0.54. This growth would bring revenue to about $859.2 million in 2021 at 78.5%. That expansion is anticipated to continue until 2023 and bring revenue to approximately $1.5 billion.

Positive Outlook

CrowdStrike’s recent growth and future estimates are certainly encouraging for investors, despite some decreases in hedge fund portfolios. CrowdStrike is well-positioned to act on increased demand for its technology and services. Estimates paint a pretty picture of continuing demand and forward momentum.

Advanced Micro Devices, Inc. (AMD) has experienced positive growth in recent months after a minor dip around March of 2020. AMD significantly outperformed the S&P 500, rising by approximately 90% compared to the S&P’s gain of about 12.6%. The semiconductor company was recently added to the WhaleWisdom Index on November 16, 2020.

AMD is an American based multinational semiconductor company that designs, manufactures, and markets microprocessors for the computing, communications, and consumer electronics markets. AMD appears to be weathering the coronavirus storm well. Demand for its microprocessors rose as more people switched to working from home. Both quarantines and government stay-at-home orders increased the desire for personal electronics for at-home entertainment. More encouraging yet is that demand is anticipated to continue beyond the pandemic’s end.

Hedge Funds Are Buying

AMD has captured the attention of hedge funds and institutions. Looking at third quarter activity by hedge funds, the aggregate 13F shares held rose to about 155.2 million from 140 million, an overall increase of approximately 10.9%. Of the hedge funds, 57 created new positions, 67 added to an existing stake, 22 exited, and 80 reduced their holdings. Institutions also increased their aggregate holdings by about 3.3%, to approximately 68.4 million from 66.2 million.

(WhaleWisdom)

Abundance of Growth

AMD has a projected 41.7% rise in revenue for the end of 2020, growing to $9.5 billion. Continued revenue growth is anticipated over the next three years, ranging from approximately 41.7% to 12% across fiscal years 2020 to 2023. For the fiscal year 2023, revenue is expected to grow to about $15.6 billion. There is similar news for earnings, with estimates for $1.24 per share by December 2020 and rising ultimately to $2.49 by 2023.

Persistence Brings Favorable Forecasts

AMD’s persistence through the pandemic brings a positive outlook from analysts. Cleveland Research Co. upgraded AMD to a Buy from a Neutral, with high expectations for fourth quarter performance. AMD also received upgraded ratings from Goldman Sachs Group, Inc. and Wells Fargo & Co. earlier this month, citing valuation as well as gains in portable computers and high-performance computing (HPC). Also, Bank of America Corp. (BofA) has a bullish outlook on the semiconductor company, with high expectations for growth over the next two years. In fact, BofA predicts that growth will quadruple to a compound annual rate of 8% from the calendar year 2020 to 2022.

AMD’s Growth Brings Optimism Beyond 2020

The company gained some impressive upward traction in recent months and overall has had an outstanding 2020. Analysts’ ratings and multi-year estimates for the stock speak to a promising future. Also, amid analysts’ predictions, AMD has generated its own positive PR by donating high-performance technology to leading global research institutions and facilities involved in the fight against the coronavirus.
With demand continuing to grow for AMD’s semiconductors, investors have many reasons to include it in their portfolios.

Chegg, Inc. (CHGG) has seen encouraging growth over the past seven months, after a mild dip in February and March 2020. The education technology company has consistently outperformed the S&P 500, rising by approximately 85.7% as of November 13, 2020, compared to the S&P’s gain of about 11%. Chegg also demonstrated its growth through an impressive rise in ranking to three on the WhaleWisdom Heatmap in the third-quarter, up considerably from its previous ranking of 39.

Chegg provides an online educational platform that includes assistance with homework, course selection, tutoring, and textbook rental services. Demand for Chegg’s direct-to-student learning platform has increased during the coronavirus pandemic, in part due to a substantial move by educational institutions to remote learning. As students seek alternatives to a professor’s physical office hours or an in-person tutor, Chegg’s services can prove valuable. It is understandable why Chegg saw strong subscriber growth in the second quarter. This upward momentum continued into the third quarter.

Mixed Q3 Results

Hedge Funds were selling in the third quarter. The aggregate 13F shares held decreased to about 38.6 million from 39.4 million, a decline of approximately 2%. Of the hedge funds, 26 created new positions, 34 added to an existing one, 37 exited, and 40 reduced their stake. In contrast to hedge funds, Chegg caught the eye of institutions. Overall, institutions increased their aggregate holdings by about 4.1% in the third quarter, to approximately 126.5 million from 121.4 million.

(WhaleWisdom)

Positive Estimates

Analysts project year-over-year revenue growth of approximately 52.9% for the fiscal year 2020, to $628.2 million in revenue. Positive year over year growth predictions continues through to 2024. There is more good news for share value. The expectation is that earnings will rise to $1.25 by December 2020 and ultimately to $2.41 by December 2023.

The education sector is outperforming the general market; At the same time, some growth may be tied to online schooling during the pandemic. Many new online education models are likely to remain in place for some time, even once the pandemic is over. Analysts see a strong fourth quarter for the company, with growing subscriptions and net revenue estimated between $188 million and $190 million.

Bright Outlook Ahead

Chegg’s impressive growth and future estimates are encouraging for investors. Chegg has reaped benefits from the pandemic’s push toward online learning; what started out as a necessary safety measure during a time of social distancing is likely to remain an integral component of a new educational territory. Investors have had strong motives to acquire shares.

Okta, Inc. (OKTA) has seen positive growth in recent months, after a brief dip in February and March 2020. The identity and access management company has dramatically outperformed the broader market, rising by approximately 92.3% as of November 13, 2020, to the S&P’s gain of about 11%.

Okta provides cloud software that helps strengthen businesses through secure user authentication into applications and web services and devices. The demand for Okta’s services has increased during the coronavirus pandemic due to a substantial increase in remote work. As organizations are being pushed to rely more on technology, there is a strong desire to keep virtual connections with workforces and customers secure and efficient. One of Okta’s services, single sign-on solution, has become quite popular. It allows users to log into multiple systems using one centralized process. Additionally, the stock has seen an added benefit from its recent announcement in October to partner with Salesforce.com, Inc. (CRM).

Okta Turns Heads

Okta has the attention of both hedge fund managers and institutions. Looking at activity by the top hedge funds in the second quarter, the aggregate 13F shares held increased to about 14.4 million from 12.8 million, an increase of approximately 12%. Of the hedge funds, 51 created new positions, 40 added to existing holdings, 22 exited, and 31 reduced their stake. Institutions also increased their aggregate holdings, increasing by about 2% to approximately 95 million from 93.2 million.

(Whale Wisdom)

Optimistic Multi-Year Estimates

Analysts anticipate continued growth in revenue from 2021 through 2023, with a forecasted annual increase in a range of approximately 29% to 37%. This would result in approximately $803.1 million in January 2021 and increasing to an impressive $1.35 billion in 2023. The strong revenue growth will also bring earnings up to $0.58 per share in 2023, up from a loss of $0.01 for 2021.

Also, Guggenheim Investments raised its price target on Okta by $30, to $230 from $200. While billings growth has slowed down, which may be due to timing issues, there seems to be optimism for improved momentum. Additionally, Canaccord Genuity also has a favorable outlook for the stock and raised the price target to $210 from $190 while offering a Hold rating on shares. Canaccord expects the remote work tailwind to continue for Okta and cites that the company is uniquely positioned for long-term success.

Bright Outlook Ahead

The future is looking bright for Okta. The recent partnership with Salesforce, as well as analysts’ multi-year forecast, are very encouraging. While there are some valuation concerns for the stock, there is also positive momentum due to the remote work tailwind. Which is likely why hedge funds have moved briskly into the stock.

Twilio Inc. (TWLO) has seen positive growth in recent months after a slow start to 2020, with hedge funds actively buying the stock. Twilio has consistently outperformed the S&P 500’s performance this year, with the shares nearly tripling compared to the S&P’s gain of about 8.7%.

Twilio develops and publishes internet infrastructure solutions, offering a cloud communications platform, communications software, and services. The company has not been impacted by the coronavirus pandemic. The pandemic has highlighted a need for easier and faster digital-based access to information and data across multiple industries such as health care and education, bringing Twilio an opportunity.

Hedge Funds Are Buying

Twilio saw an increase in its aggregate share value by looking at second-quarter activity by the top hedge funds. Aggregate 13F shares held rose to about 31.9 million from 31 million, an increase of approximately 2.7%. Of the hedge funds, 61 created new positions, 34 added to existing holdings, 23 exited, and 63 reduced their stakes. In slight contrast to hedge funds, institutions were selling. Overall, institutions decreased their aggregate holdings by about 1% to approximately 120.5 million from 121.7 million. Despite encouraging performance this year, the cloud communications company slid on the WhaleWisdom Heatmap to a ranking of 38 from 19.

(Whale Wisdom)

Mixed Multi-Year Estimates

Analysts project that earnings will decline by about 22.5% and 22.8% in 2020 and 2021, respectively. Fortunately, analysts expect a turn for the better by 2022. It is anticipated that the company will see a stunning surge in year over year growth, bringing earnings per share to $0.53 from $0.12 in 2020. Earnings are expected to continue to increase by December 2023 to $1.09 per share.

Revenue estimates are more favorable for Twilio, with continuous year-over-year growth predicted from 2020 through to 2023, bringing revenue from approximately $1.67 billion in 2020 to about $4 billion in 2023.

Acquisition Brings Optimism

A recent $3.2 billion stock deal has caught the attention of analysts. Twilio recently finalized its acquisition of customer data platform Segment, which should be a complementary addition to aid Twilio in providing its customers with valuable data, improving communication between businesses and their customers, and increasing the overall customer experience. Segment will become a division of Twilio. While third quarter results dipped into the red, there seems to be optimism for the fourth quarter earnings. Active customer accounts were up approximately 21% year over year at the end of the third quarter. The consensus from analysts is that Twilio will see approximately $432.1 million in revenue in the fourth quarter and a $0.01 loss per share.

Opportunity Ahead

While lower 2020 and 2021 earnings estimates may cause some investors to sell or reduce interest in the stock, patient investors may see it worthwhile to stay. Twilio’s upward momentum in 2020, in comparison to the S&P 500, has been impressive. Multi-year estimates from analysts and the positive impact of Twilio’s recent acquisition offer growth opportunities for the company.