What risks should investors watch for CRWD?

Investors in CrowdStrike Holdings (CRWD) should monitor several risks closely, including: 1. **Financial and Corporate Risks**: CrowdStrike has identified 36% of its risks in this category, which includes financial and accounting risks, as well as risks related to the execution of corporate activity and strategy. Investors should keep an eye on the company's financial health, including its ability to manage financial and accounting processes effectively. 2. **Ability to Sell Risks**: With 19% of risks falling under this category, investors should assess CrowdStrike's ability to maintain and grow its customer base, especially in light of any potential customer churn. 3. **Tech & Innovation Risks**: As a technology-driven company, CrowdStrike faces risks associated with innovation and the rapid evolution of the cybersecurity landscape. The company's ability to innovate and respond to new threats effectively is crucial. 4. **Legal & Regulatory Risks**: CrowdStrike is under federal investigation by the U.S. Department of Justice and the SEC over a $32 million deal with Carahsoft, which raises concerns about regulatory scrutiny and potential legal liabilities. Investors should monitor any developments related to this investigation. 5. **Production Risks**: The company's production processes and supply chain risks should be monitored, especially in light of any potential disruptions that could affect its ability to deliver products and services. 6. **Macro & Political Risks**: As a global company, CrowdStrike is subject to macroeconomic and political risks that could impact its business, such as changes in government policies or economic downturns. 7. **Stock Volatility and Market Sensitivity**: CrowdStrike's stock has shown above-average downside volatility, which could be a sign of market sensitivity to negative news or events. Investors should be prepared for potential price fluctuations. 8. **Revenue Volatility**: With a significant portion of revenue coming from subscription services, any change in customer behavior or market conditions could impact CrowdStrike's revenue stream. 9. **Cybersecurity Breach Risks**: As a cybersecurity company, CrowdStrike itself is not immune to cybersecurity breaches, which could compromise customer data and undermine investor confidence. 10. **Legal and Regulatory Compliance**: CrowdStrike's compliance with legal and regulatory requirements, especially in the cybersecurity sector, is crucial. Failure to comply could result in legal liabilities and damage to the company's reputation. By monitoring these risks, investors can make more informed decisions about their investment in CrowdStrike Holdings.