CrowdStrike TodayCRWDCrowdStrike$324.36 +2.73 (+0.85%) 52-Week Range$200.81▼$455.59P/E Ratio636.01Price Target$400.88Add to WatchlistCrowdStrike Holdings Inc. NASDAQ: CRWD stock has turned positive after a peak-to-trough drop of around 12% after the Trump administration announced sweeping new tariffs that caught many investors off guard. The tariff announcement is the latest headwind for technology stocks, including cybersecurity stocks that were among the biggest gainers in 2024. It’s too early to know th ...

Group 1: Market Overview - The market is experiencing a significant drawdown, but it is not at "crash" levels, prompting investors to prepare a buying list for potential opportunities [1] - Emotional decision-making can hinder investment strategies during downturns, emphasizing the importance of pre-research [1] Group 2: Taiwan Semiconductor Manufacturing (TSM) - Taiwan Semiconductor is a crucial chip foundry, fabricating chips for various electronic devices, making it a strong investment for future technology advancements [2] - The chip industry is cyclical, with demand fluctuating based on manufacturing supply and end-user demand, leading to potential stock crashes during downturns [3] - Despite volatility, Taiwan Semiconductor's integral role in cutting-edge technology makes it a valuable long-term investment [4] Group 3: MercadoLibre (MELI) - MercadoLibre is a leading e-commerce and fintech platform in Latin America, combining features of Amazon and PayPal, providing global diversification for investors [6] - The company may be less affected by domestic issues in Latin America during a global market crash, although its stock could still sell off due to its U.S. listing [6] - Latin America is still developing its e-commerce and fintech sectors, suggesting continued growth potential despite potential global recessions [7] Group 4: CrowdStrike (CRWD) - CrowdStrike is a major player in cybersecurity software, essential for companies to operate securely and maintain customer trust [8] - The company is expected to retain its current customers during a market downturn, providing stability with potential for strong recovery post-recession [9] - Despite its high valuation, CrowdStrike may experience deeper sell-offs during a crash, but is likely to rebound significantly as market conditions improve [10] Group 5: Investment Strategy - The focus is on stocks that may decline significantly during a market crash but are expected to rebound strongly as the market recovers, aligning with a long-term investment strategy [11]

Core Insights - Louis Stevens is a highly regarded investment analyst with a background as a former U.S. Army engineer officer, holding an MBA and a BA in political science [1] - He founded L.A. Stevens Research and developed the LAS Index, which is a selection of stocks that has consistently outperformed market indices since its inception [2] Company Overview - L.A. Stevens Research is the company behind the LAS Index, which utilizes a proprietary investment selection method [2] - The LAS Index has shown a track record of success, appealing to a wide range of investors from beginners to seasoned professionals [2]

Core Viewpoint - CrowdStrike Holdings (CRWD) has seen a 1.7% increase in share price over the past month, outperforming the S&P 500, but there are concerns about potential pullbacks leading up to the next earnings release [1] Estimates Movement - Estimates for CrowdStrike have trended downward over the past month, with a significant shift of -511.26% in the consensus estimate [2] VGM Scores - CrowdStrike currently holds an average Growth Score of C, but has a low Momentum Score of F and a Value Score of F, placing it in the lowest quintile for investment strategies, resulting in an overall aggregate VGM Score of F [3] Outlook - The downward trend in estimates suggests a negative outlook for CrowdStrike, reflected in its Zacks Rank of 4 (Sell), indicating expectations of below-average returns in the coming months [4]

The fact that CrowdStrike Holdings Inc. NASDAQ: CRWD is beating the broader market in 2025 isn’t particularly noteworthy. It is noteworthy that, after an infamous outage in July 2024, CRWD stock didn’t just recover; it soared to an all-time high in February 2024. And even after a drop of approximately 7.5% in the 30 days ending Apr. 1, analysts still see significant upside for the stock. In the last week of March, BTIG Research analyst Gray Powell upgraded CRWD stock from a Hold to a Buy rating with a $431 ...

Core Insights - Google has made its largest acquisition to date by acquiring Wiz for $32 billion, marking a significant move in the cybersecurity market [6] - CrowdStrike is facing challenges, including reputational damage from a previous software glitch and signs of revenue growth deceleration [2][3] - The competitive landscape in the cybersecurity industry is intensifying, which may impact investor confidence [3] Company Developments - Google has previously invested $5.9 billion in cybersecurity companies Siemplify and Mandiant, integrating them into its Google Cloud Platform [5] - Wiz was reportedly generating around $700 million in annual recurring revenue (ARR) at the time of acquisition, suggesting Google paid between 45 to 64 times ARR for the company [7][8] - CrowdStrike has an ARR of $4.2 billion and a market capitalization of $91.3 billion, trading at approximately 21.7 times ARR, indicating a more favorable valuation compared to Wiz [9] Market Dynamics - The acquisition of Wiz comes at a time when CrowdStrike is still dealing with brand fatigue from its previous outage [11] - The high price of the Wiz acquisition may lead to increased scrutiny from Wall Street, pressuring Google to quickly integrate Wiz into its cloud business [12] - The demand for enhanced security protocols and AI software is rising, positioning CrowdStrike at the intersection of these expanding market opportunities [13] Strategic Implications - The integration process of Wiz into Google may create distractions, potentially allowing CrowdStrike to capitalize on favorable market conditions [14] - The acquisition may not be a definitive setback for CrowdStrike, as it could serve as a catalyst for the company to strengthen its position in the cybersecurity market [15]

Core Insights - CrowdStrike's shares experienced a significant increase, rising by 3.7% as of 10:50 a.m. ET, with an earlier peak of 5.4%, amid a positive market trend for the S&P 500 and Nasdaq Composite [1] - The stock surge was primarily driven by an upgrade from BTIG, which changed its rating from neutral to buy, indicating increased investor confidence [2] Revenue Growth Projections - BTIG analysts foresee a clearer outlook for CrowdStrike's revenue growth over the next two years, predicting a potential upside of 2.5% to 8% to current Wall Street forecasts for the company's fiscal 2027 annual recurring revenue (ARR) [2] - The ARR is expected to accelerate in the second half of 2026, with projections of reaching between $6.2 billion and $6.6 billion in FY27, and ultimately hitting $10 billion by 2031 [3] Recovery from Past Challenges - CrowdStrike faced a significant outage last year, which was labeled the largest in history, resulting in a nearly 50% drop in stock value and damage to its reputation [4] - The company has since made substantial efforts to recover, with its stock fully rebounding and most analysts now rating it as a buy, despite its high forward price-to-earnings ratio of over 100 [4]

Core Insights - CrowdStrike Holdings Inc. announced that its Falcon platform achieved FedRAMP High Authorization, the highest security compliance standard, making it eligible for U.S. federal agencies and critical infrastructure entities [1][2][4] Group 1: FedRAMP Authorization Impact - The FedRAMP authorization is a significant milestone for CrowdStrike's growth potential, allowing access to government contracts that handle sensitive information [2][4] - The market reaction has been lukewarm, as investors recognize that this authorization does not guarantee exclusive contracts or immediate revenue [3][11] Group 2: Market Context and Competition - CrowdStrike is one of several cybersecurity companies to receive FedRAMP authorization, indicating a competitive landscape [7] - The broader cybersecurity industry received a boost from Alphabet Inc.'s $32 billion acquisition of Wiz, which may influence investor sentiment [9][10] Group 3: Financial Performance and Projections - CrowdStrike's fiscal year 2025 fourth quarter revenue reached a record of $1.06 billion, with a projected total addressable market (TAM) of $116 billion, expected to grow to $250 billion by fiscal year 2029 [8][12] - Despite recovering from a significant stock drop due to a software glitch, the stock remains nearly 20% below its all-time high, raising questions about its valuation [11][12] Group 4: Analyst Ratings and Price Forecast - The current analyst rating for CrowdStrike is a Moderate Buy, with a 12-month price forecast of $399.51, indicating a potential upside of 7.21% [12][15] - Bank of America recently raised its price target for CRWD stock to $450, suggesting further upside potential [15]

Core Viewpoint - CrowdStrike Holdings, Inc. has experienced a significant decline in stock price, raising concerns among investors about whether to sell or buy more shares due to ongoing legal investigations and disappointing profit guidance [2][14][16]. Group 1: Stock Performance - CrowdStrike's stock has dropped 6% in the past month and is down 19% from its 52-week high of $455.59 reached on February 19 [2][3]. - The year-to-date performance has decreased from a gain of 31.6% to only 7.9% [2]. Group 2: Legal Issues - The company is under federal investigation by the U.S. Department of Justice and the SEC regarding a $32 million deal with Carahsoft Technology, which was intended to provide cybersecurity tools to the IRS [4][5]. - Allegations include potential "pre-booking" or channel stuffing, which could inflate financial results [5][6]. - The legal scrutiny raises significant concerns about CrowdStrike's credibility and could lead to fines or reputational damage if misconduct is found [6][15]. Group 3: Market Conditions - Broader market sell-offs and macroeconomic headwinds, including a tariff war and fears of a global economic slowdown, are contributing to CrowdStrike's stock decline [7][8]. - High interest rates are making high-valuation stocks like CrowdStrike more vulnerable to market corrections [8]. Group 4: Profit Guidance - CrowdStrike issued disappointing profit guidance for fiscal 2026, projecting adjusted EPS of $3.33-$3.45, below the Zacks Consensus Estimate of $4.36 [10][11]. - The company anticipates fiscal first-quarter adjusted EPS of 64-66 cents, significantly lower than the consensus estimate of 94 cents [10][11]. Group 5: Valuation Concerns - Despite recent declines, CrowdStrike continues to trade at a high forward price-to-sales (P/S) ratio of 18.63, compared to the industry average of 13.22 [12]. - The stock's premium valuation leaves little room for error, increasing downside risk if growth expectations are not met or if negative developments arise from the ongoing investigations [13][16].

Core Insights - CrowdStrike Holdings, Inc. (CRWD) has experienced a significant decline, dropping 6% in the past month and 19% from its 52-week high of $455.59 reached on February 19, despite a year-to-date gain of 31.6% earlier in the year, which has now dwindled to 7.9% [1][7]. Legal and Regulatory Issues - The company is under federal investigation by the U.S. Department of Justice (DoJ) and the Securities and Exchange Commission (SEC) regarding a $32 million deal with Carahsoft Technology, which was intended to provide cybersecurity tools to the IRS, but the IRS reportedly never purchased the products, raising suspicions of financial irregularities [4][6]. - The investigation is focused on whether CrowdStrike engaged in "pre-booking" or channel stuffing, which involves prematurely recognizing revenues from incomplete or dubious transactions to inflate financial results [5][6]. Market Conditions - Broader market weaknesses, including fears of a global economic slowdown and high interest rates, are contributing to the stock's decline, making high-valuation stocks like CrowdStrike more vulnerable [8][9]. - The escalating tariff war has also spooked investors, leading to a tech-sector sell-off that has particularly affected high-growth companies [8]. Financial Performance and Guidance - CrowdStrike reported better-than-expected fourth-quarter fiscal 2025 results but provided disappointing profit guidance for fiscal 2026, projecting adjusted EPS of $3.33-$3.45, which is below the Zacks Consensus Estimate of $4.36 [10][11]. - The company anticipates fiscal first-quarter adjusted EPS of 64-66 cents, significantly lower than the consensus estimate of 94 cents, and its revenue outlook of $1.1006-$1.1064 billion barely meets consensus estimates [10][11]. Valuation Concerns - Despite the recent decline, CrowdStrike continues to trade at a high forward 12-month price-to-sales (P/S) ratio of 18.63, which is significantly above the industry average of 13.22, making it vulnerable to further corrections [12][14]. - The company's premium valuation compared to peers like Palo Alto Networks, Fortinet, and CyberArk Software leaves little room for error, increasing the risk of downside if growth expectations are not met or if negative developments arise from the ongoing investigations [14]. Conclusion - Given the mounting legal risks, disappointing earnings guidance, and broader market pressures, it is suggested that investors consider selling CrowdStrike stock for the time being [15][16][17].