Core Insights - The article highlights Rick's extensive experience in trading stocks and options, emphasizing his role as a best-selling author and his contributions to various authoritative publications [1]. Group 1 - Rick has over 20 years of experience in trading stocks and options, and he is recognized by major media outlets such as Good Morning America and Washington Post [1]. - In 2018, Rick authored "The Financially Independent Millennial," sharing his journey to financial independence by age 35, despite a lack of early financial education [1]. - His writing style is characterized by simplicity, often including advice he would give to his younger self, making complex financial concepts accessible [1]. Group 2 - Rick also engages in travel writing, focusing on cruise ship travel, and has interests in fast cars, technology, and cooking [1].

Core Viewpoint - CrowdStrike Holdings Inc. reported disappointing quarterly results, leading to a decline in share price despite some positive underlying trends in the business [1] Analyst Ratings and Insights - BofA Securities downgraded the rating from Buy to Neutral, raising the price target from $420 to $470, noting a 22% growth in annual recurring revenue (ARR), which exceeded expectations by 100 basis points [2] - Canaccord Genuity also downgraded the rating from Buy to Hold, increasing the price target from $420 to $475, highlighting ARR growth to $4.44 billion and net-new ARR of $194 million, with management reaffirming full-year revenue guidance of $4.74 billion to $4.81 billion [4] - RBC Capital Markets maintained an Outperform rating, raising the price target from $500 to $510, indicating that net new annual recurring revenue (NNARR) was $193.8 million, an 8.5% year-on-year decline but above consensus expectations [6] - Truist Securities reiterated a Buy rating, increasing the price target from $450 to $500, citing strong quarterly results driven by large deal activity and platform adoption [8] - Needham reaffirmed a Buy rating, raising the price target from $420 to $530, with management expecting NNARR growth to at least double in the second quarter [11] Financial Performance - CrowdStrike's revenue for the quarter was reported at $1.1 billion, aligning with the midpoint of guidance, while non-GAAP operating margin was 18.2%, surpassing the high end of guidance [9] - The company announced a new share buyback program worth $1 billion, reflecting confidence in long-term growth and cash generation [5] - Full-year revenue guidance is set between $4.743 billion and $4.805 billion, with non-GAAP earnings guidance of $3.44 to $3.56 per share [16] Growth Prospects - Next-Gen SIEM ARR tripled year-on-year, and Cloud Security growth accelerated, with Falcon Flex adoption increasing by 31% sequentially [3] - Management expressed confidence in a re-acceleration of growth in the second half of fiscal 2026, supported by traction with Falcon Flex and Next-Gen SIEM maintaining triple-digit year-on-year growth [12][14]

Core Insights - CrowdStrike Holdings, Inc. (CRWD) reported non-GAAP earnings per share of 73 cents for Q1 fiscal 2026, exceeding the Zacks Consensus Estimate by 10.61% and management's guidance of 64-66 cents, although it represented a 7.6% decline year-over-year [1][12] - Despite the earnings beat, CRWD's shares fell 6.5% in extended trading due to revenues falling short of consensus expectations [2] - The company's Q1 revenues were $1.103 billion, slightly below the Zacks Consensus Estimate of $1.105 billion, but showed a 20% year-over-year increase [2][3] Revenue Breakdown - Subscription revenues, which account for 95.2% of total revenues, increased by 20.5% year-over-year to $1.051 billion [4] - Professional services revenues rose 7.8% year-over-year to $52.67 million, contributing to the overall revenue growth [4] - As of April 30, 2025, annual recurring revenues (ARR) reached $4.4 billion, up 22% year-over-year, with a net addition of $193.8 million in the reported quarter [4][12] Customer Adoption - 48% of CRWD's subscription customers adopted six or more cloud modules, while 32% used seven or more, and 22% utilized eight or more modules as of April 30, 2025 [5] Operating Performance - Non-GAAP gross profit increased 18.5% to $857 million, with a gross margin of 78%, down 100 basis points year-over-year [6] - Non-GAAP subscription gross profit rose 19.6% to $840.8 million, while the gross margin fell 100 basis points to 80% [7] - Total non-GAAP operating expenses increased 35.6% to $656 million, representing 56% of revenues, up from 55.4% in the previous year [8][9] Profitability Metrics - Non-GAAP operating income declined 5.7% to $201.12 million, with an operating margin of 18%, down 500 basis points year-over-year [10] Cash Flow and Balance Sheet - As of January 31, 2025, CRWD had cash and cash equivalents of $4.61 billion and long-term debt of $744.36 million [13] - The company generated operating cash flow of $384.1 million and free cash flow of $279.4 million in the fiscal first quarter [13] Future Guidance - For Q2 fiscal 2026, CRWD anticipates revenues between $1.1447 billion and $1.1516 billion, with non-GAAP earnings per share expected in the range of 82-84 cents [14] - For the full fiscal year 2026, the company projects revenues between $4.7435 billion and $4.8055 billion, with non-GAAP earnings anticipated in the range of $3.44-$3.56 per share [15]

Core Insights - CrowdStrike's shares fell over 6% following disappointing revenue guidance for the current quarter [1] - The company expects revenue between $1.14 billion and $1.15 billion, below the $1.16 billion analyst estimate [2] - Adjusted earnings per share are projected between 82 cents and 84 cents, slightly above the LSEG estimate of 81 cents [2] Financial Performance - Despite weaker guidance, CrowdStrike exceeded earnings estimates with adjusted earnings per share of 73 cents, surpassing the expected 65 cents [5] - Revenue grew approximately 20% year-over-year, but the company reported a net loss of $110.2 million, or 44 cents per share, compared to a net income of $42.8 million, or 17 cents per share, from the previous year [6] - CrowdStrike announced a $1 billion share repurchase plan [6] Operational Challenges - The company is still experiencing repercussions from a significant outage last July, which affected flights and hospital procedures [3] - The termination of the customer commitment packages incentive program resulted in a revenue reduction of about $11 million for the quarter [4] - CrowdStrike anticipates a further revenue impact of $10 million to $15 million through the end of the fiscal year [4] Market Sentiment - Analyst Peter Levine from Evercore ISI downgraded CrowdStrike shares to "in line," citing a combination of full valuation and recurring one-time events as factors affecting upside potential [5] - There is growing investor frustration regarding unresolved issues within the company [5]

Company Performance - CrowdStrike Holdings shares are down nearly 7% after reporting a beat on earnings and meeting revenue expectations but providing a weak outlook [4] - Dollar Tree shares are down nearly 1.5% due to warnings that tariffs could impact future earnings [4] - Hewlett Packard Enterprise shares are up by 7.5% in premarket trading despite lowering its top-end sales outlook, indicating a stabilization in its outlook [4] - Wells Fargo shares are indicated higher by 2.5% after the Federal Reserve lifted restrictions on the bank's asset cap following a scandal involving fake customer accounts [4] Economic Indicators - The latest ADP Employment reading showed only 37,000 new jobs added, significantly below the forecast of 111,000, which may jeopardize estimates for the upcoming official employment report [5] - Markets are currently quiet, with investors awaiting the next employment report on Friday [5][6] Trade Policy and Market Sentiment - President Trump has set a deadline for countries to submit their best trade proposals, with the administration planning to review and counter these proposals to settle trade disputes before the next month's deadline [2] - The market is looking for a deal with a major trading partner, as the current trade surplus with the UK was around $11.9 billion in 2024, which may empower companies to forecast growth [3] - Overall market sentiment remains cautious as investors await clarity on trade proposals and potential tariff decisions from Washington [8]

Group 1 - Michael Wiggins De Oliveira is an inflection investor, focusing on buying undervalued companies at pivotal moments when their profitability is expected to improve significantly over the next year [1] - The investment strategy emphasizes technology and the Great Energy Transition, including uranium, with a concentrated portfolio of approximately 15 to 20 stocks and an average holding period of 18 months [1] - Michael has over 10 years of experience analyzing companies in tech and energy sectors, and has built a following of over 40,000 on Seeking Alpha [2] Group 2 - The Investing Group Deep Value Returns, led by Michael, offers insights through its concentrated portfolio of value stocks, timely updates on stock picks, and a weekly webinar for live advice [3] - The group provides "hand-holding" support for both new and experienced investors, fostering an active and kind community accessible via chat [3]

Market Overview - US stock index futures are all up, with Dow futures rising by 0.15%, S&P 500 futures by 0.17%, and Nasdaq futures by 0.14% [1] - European indices also show positive movement, with Germany's DAX up 0.59%, UK's FTSE 100 up 0.12%, France's CAC40 up 0.55%, and the Euro Stoxx 50 up 0.46% [2][3] - WTI crude oil increased by 0.06% to $63.45 per barrel, while Brent crude rose by 0.08% to $65.68 per barrel [3][4] Economic Context - The US economy demonstrates resilience against tariff impacts, with expectations of minimal volatility in the S&P 500 index following the upcoming non-farm payroll report [4] - The S&P 500 index has surged by 6.3% over the past month, marking its best May performance since 1990, and is close to its historical high [5] - Despite concerns over tariffs and rising federal deficits, the stock market remains strong, with a year-to-date increase of 1.74% and a rebound of 19.8% from the April low [5] Corporate Developments - Hewlett Packard Enterprise (HPE) reported Q2 revenue of $7.63 billion, exceeding analyst expectations, and adjusted its annual earnings guidance upward to $1.78-$1.90 per share [10] - Jia Yin Technology (JFIN) achieved Q1 revenue of approximately $1.78 billion, a year-on-year increase of 20.4%, and announced a dividend policy update [11] - Dollar Tree (DLTR) reported Q1 revenue growth of 5.4% to $4.6 billion but warned of a 50% drop in adjusted EPS for Q2 due to tariff pressures [12] - CrowdStrike (CRWD) faced a significant stock drop after Q2 revenue guidance fell short of market expectations, despite a strong Q1 performance [13] - Nvidia (NVDA) reclaimed the title of the world's most valuable company with a market cap of $3.446 trillion, driven by the AI boom [14] - Tesla (TSLA) reported a 15% year-on-year decline in May wholesale sales in China, marking the eighth consecutive month of sales drop [14] Regulatory and Policy Changes - President Trump signed an order increasing tariffs on imported steel and aluminum from 25% to 50%, effective June 4 [6] - The UK received a five-week window to negotiate a steel agreement with the US, avoiding immediate tariff increases [7] - The US Treasury is considering expanding bond buybacks as a form of quantitative easing in response to rising bond yields [7]

If you'd like to learn more about how to best position yourself in under valued stocks mispriced by the market to start June, consider joining Out Fox The Street . Analyst's Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationsh ...

Core Viewpoint - CrowdStrike Holdings is considered overvalued at a price-to-earnings ratio of 122 times its adjusted trailing earnings, despite its impressive growth performance [1][6]. Group 1: Valuation and Growth - CrowdStrike's price-to-sales (P/S) ratio is 28.1, significantly higher than the S&P 500's 3.2, indicating a premium valuation [2]. - The company has achieved an average revenue growth rate of 40% over the past three years, compared to the S&P 500's 6.3% [2]. - In the most recent quarter, CrowdStrike's revenues grew by 20% to $1.1 billion, outperforming the S&P 500's growth rate [2]. Group 2: Profitability - Reported operating income for the last twelve months was -$252 million, resulting in a negative operating margin of -6.1% [3]. - On an adjusted basis, the operating margin was 20.3%, excluding stock-based compensation and one-time expenses [3]. - The company generated an operating cash flow of $1.4 billion, leading to a cash flow-to-sales ratio of 33.4%, which is significantly better than the S&P 500's 15.7% [3]. Group 3: Financial Stability - CrowdStrike has a debt of $785 million against a market capitalization of $122 billion, resulting in a low debt-to-equity ratio of 0.6% [4]. - Cash and cash equivalents amount to $4.6 billion, representing 53% of total assets, which is substantially higher than the S&P 500's 14.8% [4]. Group 4: Market Resilience - CrowdStrike's stock has shown greater volatility during market downturns, with a 58.3% decline during the 2022 Inflation Shock, compared to the S&P 500's 25.4% [5]. - During the 2020 Covid pandemic, the stock fell by 50.0%, again worse than the S&P 500's 33.9% decline [5]. - Although the stock recovered to pre-crisis levels, its higher volatility indicates weaker resilience during market crashes [5]. Group 5: Future Outlook - Current consensus estimates project average sales growth of 21% over the next couple of years, a slowdown from the previous three-year average of 40% [7]. - Given the high valuation and potential for a broader market downturn, it is suggested that now may not be the best time to invest in CrowdStrike stock [8].

Group 1 - CrowdStrike reported Q1 earnings of $0.73 per share on sales of $1.10 billion, exceeding consensus estimates of $0.65 earnings per share on the same sales figure [1] - The company's Q1 revenue increased nearly 20%, but the adjusted operating margin fell 500 basis points year-over-year to 18% due to rising costs in professional services and higher R&D spending [3] - Despite the positive Q1 results, CrowdStrike's stock fell about 7% in extended trading, attributed to a weaker-than-expected Q2 outlook [1][2] Group 2 - CrowdStrike anticipates Q2 earnings of $0.82 per share on revenue of around $1.14 billion, which is below street expectations of $0.81 earnings per share and $1.16 billion in revenue [2] - The company raised its full-year earnings guidance to $3.44 to $3.56 in adjusted earnings per share, above the consensus of $3.43, while maintaining its sales outlook of $4.74 billion to $4.81 billion, aligning with the consensus of $4.77 billion [4] - A $1 billion share buyback program was announced, which may indicate confidence in the company's long-term prospects [4] Group 3 - CrowdStrike's stock has surged 40% this year, significantly outperforming the S&P 500 index's 2% rise, but the stock's lofty valuations may have contributed to investor unease following the minor Q2 revenue forecast miss [5] - The critical question remains whether CRWD stock is overvalued at current levels of $460, necessitating a comparison of its valuation with recent operating performance and financial condition [6]