CrowdStrike Partners With CoreWeave But Investors Sell the News
CrowdStrike Holdings Inc. (NASDAQ: CRWD) remains a leader among cybersecurity stocks. Earnings are still about two weeks away, but CRWD stock pushed to a new all-time high on Nov. 3 before giving up some gains to end the week.
One reason for the optimism was the news from CrowdStrike’s Fal.Con Europe 2025 event, the company announced a partnership with CoreWeave (NASDAQ: CRWV).
The partnership combines CoreWeave's high-performance AI Cloud with CrowdStrike’s Falcon platform, which provides industry-leading protection.
By combining, these companies may be able to solve a problem that has plagued modern artificial intelligence (AI) innovation: how to secure the systems where these large language models (LLMs) are built, trained, and deployed.
NVIDIA Added a Sweetener
It’s hard to imagine a partnership between two tech sector titans without NVIDIA Corp. (NASDAQ: NVDA) being involved. The CrowdStrike-CoreWeave partnership is being made possible, in large measure, thanks to CrowdStrike’s existing collaboration with NVIDIA. The two companies are working to deploy always-on, continuously learning AI agents for cybersecurity directly on devices.
Adding CoreWeave to this mix extends it into a real-world production environment that runs on CoreWeave’s platform, built on NVIDIA’s existing AI infrastructure. The collaboration will bring security, speed, intelligence, and resilience to the era of agentic AI.
A Trifecta or a Triple Threat?
The initial reaction to the deal, at least for CRWD stock investors, was to sell the news. That's not surprising. Valuation concerns are beginning to outweigh earnings results, and there is a clear valuation risk.
But that risk is not just about one company. In this case, you have two companies—CrowdStrike and NVIDIA—that are objectively overvalued by traditional metrics. Then you add a third, CoreWeave, that is not profitable. But that didn't stop investors from driving the stock price up more than 100% since its initial public offering (IPO) in April.
To be fair, the stock was already moving off the all-time high before the deal was struck. This may be more evidence that investors are starting to believe that it will take more than a new deal to drive these stocks higher.
Is CrowdStrike a Unicorn?
One of the bullish arguments for CRWD stock is that the company’s valuation should be treated like that of Palantir Technologies Inc. (NASDAQ: PLTR) or NVIDIA, both of which have lofty valuations that make many investors uncomfortable.
For NVIDIA, the justification comes in its dominant market share, particularly in the GPU market. With Palantir, the bull case is summarized by the fact that Palantir is one of one. There is no easy comparison for what Palantir does.
Is that the same for CrowdStrike? The company is gaining market share in a sector where the total addressable market is expected to continue growing. However, this is also an area where CrowdStrike faces significant competition.
What gives CrowdStrike its edge is the scale and sophistication of its Falcon platform. Unlike many of its cybersecurity peers, which rely on point solutions, CrowdStrike delivers an integrated, cloud-native platform that learns from trillions of security events daily.
This data advantage fuels its AI engine, enabling proactive detection and faster response times across endpoints, workloads, and identities.
The result is a sticky ecosystem where customers deploy more modules over time, driving margin expansion and retention rates above 98%.
If the company can sustain this pace of innovation while expanding into adjacent areas like identity protection and cloud security, its valuation premium could look increasingly justified.
Which brings up the most important question. Is CrowdStrike different enough to build a wide moat?
The answer may lie in the company’s execution. CrowdStrike continues to expand its platform through new modules, cross-selling, and strategic acquisitions that deepen customer lock-in.
If it can maintain its leadership in threat detection while broadening its ecosystem, CrowdStrike could earn the kind of valuation premium reserved for the few tech firms that define their category.
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