Shares of CrowdStrike, an eight-year-old cybersecurity company, rose 70% from their IPO price of $34 to close at $58, reported the Financial Times. The splashy debut was fitting for CrowdStrike, whose President and CEO George Kurtz is a part-time race car driver who sometimes competes in a CrowdStrike-branded car.
A 70% pop for a company that has yet to turn a profit underscores investors’ appetite for both the software-as-a-service model and cybersecurity expertise ( CrowdStrike’s researchers identified Russian hackers as the source of breaches of the Democratic National Committee’s systems during the 2016 election).
CrowdStrike, whose software protects corporate PCs and servers from attacks, now has a market capitalization of nearly $11.5 billion. That puts it in similar territory as cybersecurity companies like Symantec ($11.8 billion) and Fortinet ($13.1 billion), but still some distance from market leaders Palo Alto Networks ($19.5 billion) and Check Point ($17.2 billion).