Box BOX partnered with CrowdStrike CRWD to boost its cybersecurity efforts.
Per the terms, the latter’s AI-powered security platform, CrowdStrike Falcon, will be integrated with Box’s content management and collaboration features.
Notably, the partnership will allow real-time access control and threat prevention, enabling organizations to secure their data by eradicating data-related breaches.
Further, Box will utilize CrowdStrike Falcon's Zero Trust Assessment technology, enabling real-time risk evaluation, policy building, and remediation actions for security and IT teams to detect malicious files and suspicious activity.
Box and CrowdStrike will also collaborate to provide modern cybersecurity solutions, namely CrowdStrike Falcon Go and Falcon Pro, for smaller organizations.
We believe that this partnership will help Box gain strong momentum among its customers by providing them with solutions to combat cyber threats and secure content in the cloud.
Box, Inc. Price and Consensus
Box, Inc. price-consensus-chart | Box, Inc. Quote
Growth Prospects
The latest move bodes well for Box’s growing efforts to strengthen its footprint in the global cybersecurity market.
Per a Fortune Business Insights report, the global cybersecurity market size is expected to be valued at $172.32 billion in 2023 and reach $424.97 in 2030, exhibiting a CAGR of 1.8% between 2023 and 2030.
A Mordor Intelligence report predicts the cybersecurity market size to hit $182.86 billion in 2023 and reach $314.28 billion by 2028, indicating a CAGR of 11.4% during the forecast period of 2023-2028.
Strong prospects in the booming cybersecurity market will likely aid the company in winning investors’ confidence in the days ahead.
However, macroeconomic pressures and rising competition are major concerns.
Box has lost 17.4% in the year-to-date period, underperforming the industry’s growth of 52.1%.
Strengthening Product Portfolio
The latest move is in sync with the company’s growing focus on strengthening its overall product portfolio by leveraging AI-infused capabilities.
Apart from the latest move, Box introduced Box AI, a suite of capabilities that integrates advanced AI models into its Content Cloud, enhancing security, compliance and privacy.
Also, Box’s recent launch of Box Hubs, a Content Cloud solution that integrates with Box AI, enabling users to securely curate and publish content across the enterprise, remains noteworthy.
Further, Box partnered with Microsoft MSFT to introduce a new plugin for Microsoft's AI workplace tool, Microsoft 365 Copilot, enhancing the usefulness of Box files within organizations.
Additionally, Box also announced several updates to its integrations with Microsoft’s 365 Copilot, allowing users to easily find, preview, access and work with Box files while collaborating with colleagues and partners.
All the above-mentioned endeavors will enable Box to deliver an enhanced customer experience, which, in turn, will likely strengthen the company’s overall financial performance in the near term.
Box expects fiscal 2024 revenues in the band of $1.040-$1.044 billion, indicating an increase of 5% from the fiscal 2023 level. The Zacks Consensus Estimate for fiscal 2024 revenues is pegged at $1.04 billion, implying year-over-year growth of 5.21%.
Zacks Rank & A Stock to Consider
Currently, BOX carries a Zacks Rank #3 (Hold).
A better-ranked stock in the broader technology sector is Applied Materials AMAT, which carries a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Applied Materials have gained 46% in the year-to-date period. AMAT’s long-term earnings growth rate is currently projected at 6.10%.
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Today, See These 5 Potential Home Runs >>Microsoft Corporation (MSFT) : Free Stock Analysis Report
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Box, Inc. (BOX) : Free Stock Analysis Report
CrowdStrike (CRWD) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
