Forecast: Two Shares Set to Outshine Pepsi and Starbucks in Value by the Fifth Year Mark
In the realm of colossal businesses, it's difficult to overlook the iconic brands housed under PepsiCo's umbrella. Established in 1898, the company introduced Pepsi-Cola and has since expanded its portfolio to include notable names like Mountain Dew, Lay's, Gatorade, Doritos, Tostitos, and Quaker Oats. Boasting a market capitalization of over $200 billion, Pepsi has a long-standing presence in the industry.
While Pepsi has held dominance for over a century, coffee giant Starbucks also poses a formidable challenge, with a market valuation of about $100 billion. Founded in 1971 and only half the age of Pepsi, Starbucks has carved out its niche in the market.
Unexpectedly, newer companies with earlier inceptions, such as cybersecurity specialist CrowdStrike and cryptocurrency platform Coinbase, may surpass the valuations of both Pepsi and Starbucks within five years. While this may seem improbable, both CrowdStrike and Coinbase are poised to make waves in their respective industries.
1. CrowdStrike: The Cybersecurity Heavyweight
CrowdStrike is not a one-size-fits-all cybersecurity solution; instead, it offers a software platform with close to 30 modules to choose from. Customers can select the modules that meet their specific needs, often starting small before consolidating their cybersecurity spend by adopting more of CrowdStrike's offerings.
The company has a dual growth strategy, which involves attracting new customers and encouraging existing ones to adopt more of its software modules. With its customers growing and increasingly relying on its services, CrowdStrike’s annual recurring revenue (ARR) is on an upward trend. In its 2025 fiscal third quarter, the company exceeded $4 billion in ARR, representing a 27% year-over-year growth. CrowdStrike aims to reach $10 billion in ARR within six more years.
In addition to its strong financial performance, CrowdStrike is well-positioned to excel in the cybersecurity market, which is set to grow exponentially in the coming years. By maintaining solid operational practices, the company could achieve a free-cash-flow margin between 34% to 38% long-term. With such milestones, CrowdStrike's market valuation could surpass Pepsi's current market cap.
2. Coinbase: The Crypto Giant
Coinbase may not have as smooth a path to surpassing Pepsi's valuation as CrowdStrike, but it is not impossible. The company's long-term success hinges on regulatory policies, which have been marked by uncertainty in the crypto space. However, a favorable regulatory environment and growing crypto adoption could potentially make that happen.
Coinbase is a trusted platform used by millions of individuals and institutions alike. Its revenue has grown significantly, with more than $3 billion in annual earnings before interest, taxes, depreciation, and amortization recorded a few years ago. While the crypto market is vulnerable to volatility, Coinbase is nonetheless a solid bet when conditions are favorable.
If Coinbase can maintain this momentum and reach $7 billion in EBITDA over the next five years, it might surpass Pepsi's market valuation, assuming it maintains a valuation of around 30 times its EBITDA. While there's no guarantee of consistent crypto adoption and regulatory approval, even modest growth in the crypto ecosystem could still push Coinbase's valuation higher than Starbucks.', if not Pepsi.
In conclusion, both CrowdStrike and Coinbase have strong potential to outgrow Pepsi and Starbucks, as long as they navigate the industry challenges and maintain a focus on innovation, expansion, and favorable regulatory policies. While CrowdStrike may have a more straightforward path, Coinbase poses a more enticing, albeit speculative, proposition.
- CrowdStrike's market valuation could surpass Pepsi's current market cap due to its strong financial performance and position in the rapidly growing cybersecurity market, with a potential free-cash-flow margin between 34% to 38% long-term.
- To surpass Pepsi's valuation, Coinbase would need to maintain a favorable regulatory environment, growing crypto adoption, and reach $7 billion in EBITDA over the next five years, assuming it maintains a valuation of around 30 times its EBITDA.
- Investing in companies like CrowdStrike and Coinbase, known for their innovative approaches and potential for exponential growth in their respective industries, can be a motivating factor for those looking to diversify their portfolios.
- The depreciation of traditional industries like food and beverage may be counteracted by the appreciation of new sectors like technology and cryptocurrency, emphasizing the importance of finance and investing in a diversified portfolio.
