CrowdStrike (CRWD) is the latest IPO which has seen an absolute boom, as shares have more than doubled on their opening day compared to the initial offering range. Investors, or perhaps speculators, are extremely attracted to rapidly growing companies these days, especially if sales are still doubling each year, as steep sales multiples and losses are no major concern for this investor clientele.
Following a momentum run seen already, I am not joining the craze. At the offer price the company traded at around 16 times annualised sales which of course is a