Stocks have been a volatile place for investors to be lately, and that's been especially true for the companies that make up the Nasdaq Composite (^IXIC 0.28%). Big drops have been a regular part of the picture for Nasdaq investors, although the index managed to claw back a 0.2% gain Tuesday afternoon as of 2:30 p.m. EDT after recent declines.
Some popular stocks have taken big hits in recent months. However, a couple of them are doing well today, and that has a lot investors taking a look to decide whether now's the time to climb in. Below, we'll look at why CrowdStrike Holdings (CRWD 1.75%) and Enphase Energy (ENPH +3.19%) are rising and how their businesses look going forward.
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CrowdStrike strikes again
Shares of CrowdStrike Holdings were up almost 5% Tuesday afternoon. The cybersecurity specialist announced a couple of new product launches that emphasized the value of its software-as-a-service platform.
First, CrowdStrike said it had added new features to its cloud security posture management product, Falcon Horizon. The cloud-based software looks at internet traffic behavior and seeks to detect patterns that could signal current or future attacks. By using real-time telemetry and analytics, CrowdStrike is able to detect threats more quickly and take action to protect clients across its entire platform.
In addition, CrowdStrike has expanded its broader Falcon platform to incorporate more features and allow for more users. Expanded macOS coverage will appeal to clients who favor hardware platforms that run that operating system, while new capabilities from CrowdStrike's Zero Trust and the addition of a new message center for its Complete and OverWatch services will enhance the value of Falcon for users.
Even after today's gains, CrowdStrike shares are still more than 20% below their highs from February. If the cybersecurity expert can keep enhancing its offerings, however, growing demand from key customers could help bring the stock back to its former heights quickly.
Enphase's day in the sun
Elsewhere, shares of solar microinverter specialist Enphase Energy also picked up almost 5%. The stock has seen precipitous declines of more than 45% over the past several months, but the prospects for its underlying business remain strong.
Enphase's fundamentals look extremely strong right now. Revenue was up 47% in the first quarter of 2021 compared to year-earlier results, and that was even better than the company itself had projected. The company sees considerable year-over-year growth continuing into the near future.
What's uncertain, though, is how much solar power system installation activity got delayed due to the pandemic. Many industries are seeing pent-up demand work through the system as the economy reopens, but Enphase investors have had extremely high expectations that sent the stock soaring over the past few years.
Solar power technology continues to evolve, and Enphase's microinverters have become must-have components for the most efficient systems. That's not likely to change, and that's why so many shareholders are patient with Enphase even through its dramatic decline during much of 2021.
