CrowdStrike Holdings Shares Plummet 14% on Weak Outlook

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a prominent player in the cybersecurity industry, providing cloud-delivered protection across endpoints, cloud workloads, identity, and data. The company is known for its Falcon platform, which offers a comprehensive suite of cybersecurity solutions. CrowdStrike competes with other cybersecurity firms like Palo Alto Networks and Fortinet, striving to maintain its edge in a rapidly evolving digital landscape.

On March 26, 2025, BTIG upgraded CrowdStrike's stock rating to "Positive" from "Neutral," with the stock priced at $375.74. This upgrade reflects a growing confidence in CrowdStrike's market position and potential for growth. The upgrade aligns with the broader sentiment among Wall Street analysts, who have given the company an average brokerage recommendation (ABR) of 1.54, indicating a favorable investment opportunity.

The positive outlook from analysts is further supported by the fact that out of 46 brokerage firms, 33 have given CrowdStrike a Strong Buy recommendation, while three have recommended Buy. These ratings account for 71.7% and 6.5% of all recommendations, respectively. This strong consensus suggests that analysts see significant potential in CrowdStrike's future performance, driven by the ongoing demand for cybersecurity solutions.

Despite the recent upgrade, CrowdStrike's stock price has seen a slight decrease of 2.45%, with a current price of $375.52. The stock has fluctuated between a low of $372.11 and a high of $384.77 today. Over the past year, the stock has experienced a high of $455.59 and a low of $200.81, reflecting its volatility in the market. The company's market capitalization is approximately $93.08 billion, indicating its substantial presence in the cybersecurity sector.

The upgrade by BTIG and the positive analyst sentiment highlight the enduring importance of cybersecurity in today's digital world. As noted by Jeff Pierce, the demand for cybersecurity solutions remains robust, and CrowdStrike's previous challenges are now considered to be in the "rearview mirror." This positive outlook suggests that CrowdStrike is well-positioned to capitalize on the growing need for cybersecurity protection.

Shares of CrowdStrike (NASDAQ:CRWD) fell more than 8% intra-day today after the cybersecurity firm issued weaker-than-expected guidance for the current quarter, overshadowing its strong fourth-quarter results.

The growing threat of cyberattacks has driven increased spending on digital security solutions, benefiting CrowdStrike and its artificial intelligence-driven cybersecurity products. High-profile hacking incidents last year, including those targeting AT&T, Live Nation Entertainment’s Ticketmaster, and UnitedHealth Group, underscored the rising demand for robust cybersecurity defenses.

For the fourth quarter, CrowdStrike posted adjusted earnings per share (EPS) of $1.03 on revenue of $682 million, surpassing analyst estimates of $0.86 EPS and $668.9 million in revenue. Annual recurring revenue (ARR), a key metric for subscription-based businesses, grew 23% year-over-year.

Despite the strong Q4 performance, investors reacted negatively to the company’s forward outlook. CrowdStrike projected adjusted operating income for the current quarter between $173.1 million and $180 million, significantly below the consensus estimate of $219.7 million. Revenue guidance ranged from $1.10 billion to $1.11 billion, roughly in line with the expected $1.11 billion.

For the full fiscal year, the company expects adjusted diluted EPS between $3.33 and $3.45, while revenue is forecast to reach between $4.74 billion and $4.81 billion. While CrowdStrike continues to benefit from growing cybersecurity demand, the cautious outlook raised concerns among investors, driving the stock lower in early trading.

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a prominent player in the cybersecurity industry, specializing in endpoint security. The company is known for its advanced threat detection and response capabilities. As a leader in its field, CrowdStrike competes with other cybersecurity firms like Palo Alto Networks and FireEye. On March 4, 2025, CRWD is set to release its quarterly earnings, with Wall Street analysts estimating an earnings per share of $0.85 and projected revenue of approximately $1.03 billion.

Despite a negative price-to-earnings (P/E) ratio of 741.65, CrowdStrike's high valuation reflects strong investor confidence in its future growth potential. The company's price-to-sales ratio of 25.20 indicates that investors are willing to pay over 25 times the company's sales, highlighting the market's optimism about its revenue-generating capabilities. The enterprise value to sales ratio of 24.28 further underscores the company's valuation relative to its revenue.

CrowdStrike's financial health is supported by a debt-to-equity ratio of 0.26, indicating a relatively low level of debt compared to its equity. This suggests that the company is not heavily reliant on borrowed funds, which can be a positive sign for investors. Additionally, the current ratio of 1.86 demonstrates CrowdStrike's strong ability to cover its short-term liabilities with its short-term assets, providing a cushion against potential financial challenges.

However, the company faces scrutiny as Bronstein, Gewirtz & Grossman, LLC investigates potential claims on behalf of investors following a Bloomberg News report. The report revealed that U.S. prosecutors and regulators are examining a $32 million deal between CrowdStrike and a technology distributor, Carahsoft Technology Corp., involving cybersecurity tools for the IRS. This investigation could impact investor sentiment and the company's stock performance.

Despite past challenges, such as a significant software platform outage last summer, CrowdStrike has shown resilience. The company has implemented customer-friendly retention packages to mitigate reputational damage. As CrowdStrike prepares to report its earnings for the fourth quarter of fiscal 2025, investors are keenly watching for any developments that could influence the stock's performance.

• Gabriela Borges from Goldman Sachs sets a price target of $415 for CRWD, indicating a potential upside of approximately 13.45%.
• CrowdStrike surpasses $1 billion in quarterly sales for the first time, showcasing its strong market position.
• The company's valuation suggests a 10% undervaluation, with a consensus fair share price estimated at $398.

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a prominent player in the cybersecurity industry, known for its cloud-delivered endpoint protection platform. The company has been gaining attention due to its strong market position and innovative solutions. CrowdStrike competes with other cybersecurity firms like Palo Alto Networks and Fortinet, but it has carved out a significant niche with its advanced threat intelligence and endpoint protection services.

On December 24, 2024, Gabriela Borges from Goldman Sachs set a price target of $415 for CRWD. At that time, the stock was trading at $365.79, suggesting a potential upside of approximately 13.45%. This optimistic outlook is supported by the company's strong fundamentals and recent achievements, including surpassing $1 billion in quarterly sales for the first time.

CrowdStrike's robust financial position is further highlighted by its improved EBITDA, a key measure of a company's operating performance. The company's valuation is considered attractive, with a consensus fair share price estimated at $398. This suggests a 10% undervaluation, indicating strong future growth potential. The stock's current price of $365.79 reflects a 1.19% increase, with a trading range between $359.26 and $366 for the day.

The company's market capitalization stands at approximately $90.1 billion, with a trading volume of 1,276,736 shares. Over the past year, CRWD has seen a high of $398.33 and a low of $200.81. These figures demonstrate the stock's volatility but also its potential for significant gains, especially with the industry tailwinds and capable management driving its growth.

• Morgan Stanley reaffirms its "Overweight" rating on NASDAQ:CRWD, raising the price target from $355 to $390.
• CrowdStrike's stock price reflects a 1.75% increase, trading at $352.03, with a year-high of $398.33 and a low of $200.81.
• The company's market capitalization stands at approximately $82.32 billion, showcasing its significant presence in the cybersecurity industry.

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a prominent player in the cybersecurity industry, providing cloud-delivered protection across endpoints, cloud workloads, identity, and data. The company is known for its Falcon platform, which offers advanced threat intelligence and cyberattack prevention. CrowdStrike competes with other cybersecurity firms like Palo Alto Networks and Fortinet.

On December 2, 2024, Morgan Stanley maintained its "Overweight" rating for CrowdStrike, indicating a positive outlook on the stock. At the time, the stock was priced at $342.07. Morgan Stanley also raised its price target from $355 to $390, suggesting confidence in the company's future performance and potential for growth.

The Investment Committee has identified CrowdStrike as a top stock to watch for the second half of the year. This attention from investors and analysts suggests potential developments in the stock's performance. Currently, CRWD is trading at $352.03, reflecting a 1.75% increase or $6.06 from the previous price.

Today, CrowdStrike's stock has fluctuated between $336.56 and $354.34. Over the past year, it has seen a high of $398.33 and a low of $200.81. This volatility indicates the dynamic nature of the stock, which is common in the tech sector. The company's market capitalization is approximately $82.32 billion, with a trading volume of 3,280,442 shares on the NASDAQ exchange.

• CrowdStrike Holdings, Inc. (NASDAQ:CRWD) receives a price target of $395 from KeyBanc, indicating a potential upside.
• The company surpasses its $4 billion annual recurring revenue milestone, showcasing strong financial performance.
• CrowdStrike boasts high retention rates, with a gross retention rate (GRR) of 97% and a net retention rate of 115%, reflecting strong customer loyalty.

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a prominent player in the cybersecurity industry, known for its cloud-delivered endpoint protection platform. The company competes with other cybersecurity firms like Palo Alto Networks and Fortinet. On November 27, 2024, Eric Heath from KeyBanc set a price target of $395 for CRWD, suggesting a potential upside of 15.47% from its trading price of $342.07.

Despite a recent decline in share price due to an unexpected third-quarter loss, CrowdStrike's financial performance remains strong. The downturn followed a significant outage in July, yet analysts continue to hold a positive outlook on the stock. As highlighted by Nicole Petallides, the analyst community, including Wedbush's Dan Ives, remains optimistic, with Ives setting a bullish price target of $390.

CrowdStrike's resilience is evident in its recent financial achievements. In the third quarter of fiscal year 2025, the company surpassed its $4 billion annual recurring revenue (ARR) milestone, reporting an ARR of $4.02 billion, slightly above the estimated $4.01 billion. This achievement underscores the company's robust market position and customer loyalty.

The company's retention rates further highlight its strong customer base. With a gross retention rate (GRR) of 97% and a net retention rate of 115%, CrowdStrike not only retains its customers but also sees them expanding their product portfolios. This stickiness is a testament to the value customers find in CrowdStrike's offerings.

Currently, CRWD's stock is priced at $341.78, reflecting a decrease of 6.18% or $22.53. The stock has fluctuated between $340.52 and $359.22 during the trading day. Over the past year, it has seen a high of $398.33 and a low of $200.81, with a market capitalization of approximately $83.77 billion. The trading volume for the day is 7,590,794 shares.

CrowdStrike Holdings (NASDAQ:CRWD) reported strong third-quarter results and raised its annual forecast, driven by increased demand for its cybersecurity solutions amid the rise of AI-fueled online threats. Despite the positive performance, the company’s shares dropped over 3% in pre-market today due to underwhelming fourth-quarter revenue guidance.

In the third quarter, CrowdStrike achieved revenue growth of 29%, reaching $1.01 billion and surpassing analyst expectations of $982 million. Adjusted profit per share came in at $0.93, well above the forecasted $0.81. The company also crossed $4 billion in annual recurring revenue (ARR), a milestone that reinforced its leadership in the cybersecurity sector.

For the fourth quarter, CrowdStrike projected revenue between $1.03 billion and $1.04 billion, aligning closely with the consensus estimate of $1.03 billion but failing to excite investors. However, the company raised its annual adjusted earnings outlook, now expecting profit per share in the range of $3.74 to $3.76, up from the prior guidance of $3.61 to $3.65.