2 Monster Growth Stocks in the Making

Whether you realize it or not, you probably interact with artificial intelligence (AI) on a daily basis. This includes search engines, social media sites, and product recommendation systems, as well as the smart speakers in your home and the personal assistant on your smartphone. But AI is also being used in other products, like cybersecurity and fintech platforms, demonstrating its ability to reshape the world across industries.

Why does that matter? According to Ark Invest, by 2037, AI will add $30 trillion to the global equity market cap. In other words, this technology puts shareholders in front of a massive opportunity. With that in mind, both CrowdStrike Holdings (NASDAQ:CRWD) and Riskified (NYSE:RSKD) look like monster growth stocks in the making. Here’s why.

Image source: Getty Images.

1. CrowdStrike

CrowdStrike specializes in endpoint and workload protection. Its Falcon platform is designed to secure devices and applications in any environment, from private data centers to the public cloud. To do this, CrowdStrike crowdsources data from millions of endpoints (e.g. desktops, servers), then leans on artificial intelligence to block even the most sophisticated attacks. More importantly, CrowdStrike’s scale means it collects more data than any of its rivals, which makes its AI models uniquely effective in detecting and preventing threats.

For that reason, CrowdStrike has become the gold standard in many sub-sectors of the cybersecurity industry. For instance, the International Data Corp. recently recognized Falcon Complete as the best-managed detection and response product on the market, citing greater capabilities and a stronger growth strategy than any other solution. With Falcon Complete, the company provides cybersecurity as a service, deploying a team of professional threat hunters that deliver round-the-clock protection to clients. This solution is especially valuable for companies that don’t have the time or resources to manage their own security and CrowdStrike backs the product with a $1 million breach warranty, showing management’s confidence in the platform.

Not surprisingly, this has translated into strong demand. During the Q2 earnings call, CEO George Kurtz said the company has seen an increase in the Falcon Complete customer base of nearly 2.5 times year-over-year in the recent quarters. CrowdStrike’s business continues to fire on all cylinders, and the company’s financial performance has been impressive over the past year.

Source: YCharts. TTM = trailing-12-months. CAGR = compound annual growth rate. Note: Q2 2022 ended July 31, 2021.

Looking ahead, management puts its market opportunity at $106 billion by 2025, leaving the company with plenty of room to grow. And while CrowdStrike now has over 13,000 customers,…