Should you buy CrowdStrike stock after a ‘beat and raise’?

CrowdStrike Holdings Inc (NASDAQ: CRWD) reported market-beating results for its fiscal second quarter and raised guidance for the future on Tuesday. Shares are still in the red after the bell.

Is CrowdStrike stock a ‘buy’ here?

Despite a strong report and the fact that “CRWD” is now down about 20% from its year-to-date high, Quint Tatro (Founder of Joule Financial) warns the CrowdStrike stock is still too expensive to own. On CNBC’s “The Exchange”, he said:

For the full financial year, CrowdStrike now forecasts $1.31 to $1.33 of per-share earnings on up to $2.25 billion in revenue. In comparison, analysts had called for $1.22 and $2.21 billion, respectively. Still, Tatro says:

CrowdStrike Q2 earnings snapshot

• Lost $49.3 million versus the year-ago $57.3 million
• Per-share loss narrowed to 21 cents from 25 cents
• On an adjusted basis, earned 36 cents per share
• Revenue jumped 58% YoY to $535.2 million
• Consensus was 28 cents EPS on $516 million revenue
• Annual recurring revenue (ARR) went up 59%
• More than doubled the free cash flow to $73.6 million
• Subscription gross margin remained flat at 76%

The Nasdaq-listed company added 1,660 net new subscribers this quarter. It now has 13,080 in total – up 81% year-on-year, as per the earnings press release.