News

CrowdStrike Holdings Inc. CRWD reported solid fourth-quarter 2024 results on Mar 5 after the closing bell. It surpassed estimates earnings and revenue estimates and provided upbeat guidance for the ongoing quarter and the full year.

Driven by the solid results, CRWD shares jumped as much as 26% in the after-market hours on elevated trading volumes. Investors should tap the opportune moment by investing in ETFs with double-digit exposure to this cybersecurity giant. These include Global X Cybersecurity ETF BUG, TrueShares Technology, AI and Deep Learning ETF LRNZ, Wisdomtree Cybersecurity Fund WCBR, First Trust Nasdaq Cybersecurity ETF CIBR and Amplify Cybersecurity ETF HACK.

CrowdStrike's earnings per share were 95 cents, beating the Zacks Consensus Estimate of 82 cents and improving from 47 cents per share reported in the year-ago quarter. Revenues climbed 33% year over year to $845.3 million and beat consensus estimate of $839 million. Robust results can be credited to the company’s strategy of offering its security products on a single platform.

The cybersecurity firm expects revenues in the range of $902.2-$905.8 million and earnings per share of 89-90 cents for the first quarter. For fiscal 2025, CrowdStrike projects revenues in the range of $3.92-$3.99 billion and earnings per share of $3.77-$3.97 (read: Here's Why You Should Invest in Cybersecurity ETFs).

Meanwhile, CrowdStrike announced that it has reached a deal to acquire cloud-computing security firm Flow Security. Terms of the acquisition were not disclosed.

ETFs in Focus

Global X Cybersecurity ETF (BUG)

Global X Cybersecurity ETF offers exposure to the companies that stand to benefit from the increased adoption of cybersecurity technology, such as those whose principal business is the development and management of security protocols preventing intrusion and attacks to systems, networks, applications, computers and mobile devices. It follows the Indxx Cybersecurity Index and holds 24 stocks in its basket, with CrowdStrike taking the top spot at 7.7% share.

Global X Cybersecurity ETF has accumulated $794.1 million in its asset base and trades in an average daily volume of 263,000 shares. It charges 51 bps in annual fees.

TrueShares Technology, AI and Deep Learning ETF (LRNZ)

TrueShares Technology, AI and Deep Learning ETF is an actively managed fund seeking to provide thematic exposure to a concentrated portfolio of technology companies that are significantly involved in the application of advanced levels of artificial intelligence within their businesses. It holds 24 stocks in its basket, with CRWD occupying the second position at 7.5%.

TrueShares Technology, AI and Deep Learning ETF charges 68 bps in fees per year. LRNZ has amassed $45.9 million in its asset base and trades in an average daily volume of 17,000 shares (read: Time to Buy the Dip in Snowflake ETFs?).

WisdomTree Cybersecurity Fund (WCBR)

WisdomTree Cybersecurity Fund targets exposure to companies driving innovation in cybersecurity technologies by tracking the WisdomTree Team8 Cybersecurity Index. The fund holds 25 stocks in its basket, with CRWD taking the top spot at 7.2% of the portfolio.

WisdomTree Cybersecurity Fund has attracted $108.1 million in its asset base and trades in an average daily volume of 110,000 shares. It charges 45 bps in annual fees.

First Trust Nasdaq Cybersecurity ETF (CIBR)

First Trust Nasdaq Cybersecurity ETF follows the Nasdaq CTA Cybersecurity Index, which measures the performance of companies engaged in the cybersecurity segment of the technology and industrial sectors. The index includes companies primarily involved in the building, implementation and management of security protocols applied to private and public networks, computers and mobile devices to provide protection for the integrity of data and network operations.

First Trust Nasdaq Cybersecurity ETF holds 32 stocks in its basket, with CrowdStrike taking the second spot at 6.6%. It has accumulated $6.9 billion in its asset base and charges 59 bps in annual fees. CIBR trades in an average daily volume of 780,000 shares.

Amplify Cybersecurity ETF (HACK)

Amplify Cybersecurity ETF provides global exposure to the companies providing cyber security solutions that include hardware, software and services. It tracks the Nasdaq ISE Cyber Security Select Index, holding 26 securities in its basket. CrowdStrike takes the third position with 6% of assets.

Amplify Cybersecurity ETF has amassed $1.8 billion in AUM and charges 60 bps in fees per year. It trades in a volume of 155,000 shares a day on average.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.