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Betting on Growth: 2 Growth Stocks That Could Shine

Are you on the lookout for the next big investment opportunity? 

Well, look no further because two growth stocks are poised to end 2023 on a high note, and they're bound to make waves in 2024. Let's delve into the exciting prospects of CrowdStrike and Sea Limited.

CrowdStrike: Fortifying Cybersecurity in the Cloud Age

CrowdStrike ($CRWD) is our first contender in the world of growth stocks. 2023 has been a banner year for CrowdStrike, with its stock surging over 50%. But here's the exciting part: this cloud-based cybersecurity software company shows no signs of slowing down.

In a world where organizations are rapidly migrating sensitive data to the cloud, cybersecurity is paramount. Malevolent actors are eager to exploit vulnerabilities, making CrowdStrike's AI-powered cybersecurity modules more crucial than ever. Their solutions are in high demand, and the financial results speak volumes.

cybersecurity, crowdstrike stock, icloud security

Key Highlights from CrowdStrike's Recent Quarterly Report (July 31):
  • Quarterly revenue surged to a whopping $732 million, marking a remarkable 37% year-over-year growth.
  • Annual recurring revenue (ARR) soared to $2.9 billion.
  • A remarkable 63% of customers now subscribe to five or more security modules.
  • Notably, CrowdStrike is making strides in profitability, with a net income of $8.5 million for the most recent quarter – the highest ever for the company.
But what about the future? CrowdStrike is projected to maintain its impressive growth, with revenue expected to increase by 25% to 35% over the next 16 months. By the end of fiscal year 2025, they anticipate annual revenue exceeding $3 billion.

While it's true that CrowdStrike's stock isn't for everyone and carries a relatively high price-to-sales ratio of 15, its rapid sales trajectory makes it an intriguing option for investors seeking high-growth for their portfolios.

(Disclaimer: CRWD is one of the stocks/ETFs we are currently trading/investing)

Sea Limited: A Comeback Story in the Making

Our second contender is Sea Limited ($SE), a Southeast Asian conglomerate with a remarkable turnaround potential. After a rough patch that saw its stock drop from almost $89 per share to under $40, Sea Limited is gearing up for a comeback.

The disappointing performance of its gaming division, Garena, was a significant factor behind the stock's decline. However, there's reason to be optimistic. Free Fire, once the world's most downloaded mobile game, is set to return to the Indian market in late September, a market Sea Limited had to exit in early 2022. The new version of Free Fire, designed to align with India's government regulations, is expected to rejuvenate the struggling gaming division.

Despite Garena's woes, Sea Limited reported a 5% year-over-year increase in overall Q2 revenue, totaling $3.1 billion. Furthermore, the company's cost-cutting efforts led to an 11% reduction in expenses during the same period, resulting in a third consecutive quarterly profit of $331 million.

What's more, Sea Limited's forward price-to-earnings (P/E) ratio stands at just 17, a considerably lower valuation compared to other e-commerce giants like Amazon ($AMZN) and MercadoLibre ($MELI). This could suggest that pessimism surrounding Garena's performance might be overblown.

Considering Sea Limited's substantial discount, approximately 90% below its all-time high due to 2022's bear market, the stage is set for an exciting comeback. If Garena's return to India can reignite growth or at least stabilize the division, Sea Limited's e-commerce and fintech segments could help this entertainment stock close out the year on a high note.

(Disclaimer: SE is one of the stocks/ETFs we are currently trading/investing)

In conclusion, both CrowdStrike and Sea Limited are intriguing growth stocks with compelling stories. CrowdStrike continues to thrive in the cybersecurity sector, while Sea Limited is poised for a remarkable comeback. Keep a close eye on these two stocks as they could be your ticket to a prosperous 2024.

Good Trading!

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All the information shared is provided for educational purposes only. Any trades placed upon the reliance of SharperTrades, LLC, are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward in trading stocks, cryptos, commodities, options, forex, and other trading securities, there is also a substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability to trade. Trading results can never be guaranteed. SharperTrades, LLC, is not registered as an investment adviser with any federal or state regulatory agency. This is not an offer to buy or sell stocks, cryptos, forex, futures, options, commodity interests, or any other trading securities.

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