CrowdStrike TodayCRWDCrowdStrike$468.83 -3.39 (-0.72%) 52-Week Range$200.81▼$475.50P/E Ratio919.29Price Target$404.43Add to WatchlistCrowdStrike Holdings Inc. NASDAQ: CRWD is scheduled to report earnings after the market closes on June 3. Analyst sentiment has generally been bullish. That makes it noteworthy that one analyst firm, DZ Bank, issued a rare Strong Sell rating on the stock on May 23 with a price target of $370, a 20% drop from the stock’s price on May 28. The downgrade is more startling because ...

CHONGQING, CHINA - MARCH 3: In this photo illustration, the CrowdStrike Holdings, Inc. logo is ... More displayed on a smartphone screen, with the company's latest stock market performance and candlestick charts visible in the background, highlighting CrowdStrike's real-time financial trends, stock price fluctuations, market volatility, and investment developments within the cybersecurity, cloud security, and technology sectors, on March 3, 2025, in Chongqing, China. (Photo by Cheng Xin/Getty Images)Getty I ...

On June 3, CrowdStrike (CRWD -0.74%) will report results for its fiscal 2026's first quarter, which ended on April 30. The cybersecurity giant is hoping to put its fiscal 2025 firmly in the rear-view mirror, as the year was marred by a devastating gaffe -- the flawed software update it released on July 19 that crashed around 8.5 million Windows computers run by its clients, disrupting the operations of banks, airlines, healthcare providers and more. That incident took a near-term toll on CrowdStrike's busin ...

Company Performance - CrowdStrike Holdings (CRWD) closed at $468.83, reflecting a -0.72% change from the previous trading day, underperforming compared to the S&P 500's loss of 0.56% [1] - Over the past month, CRWD shares gained 9.57%, which is below the Computer and Technology sector's gain of 11.21% but above the S&P 500's gain of 7.37% [2] Upcoming Earnings - The company's earnings report is scheduled for June 3, 2025, with projected earnings per share (EPS) of $0.66, indicating a 29.03% decrease year-over-year [3] - Revenue is anticipated to be $1.1 billion, reflecting a 19.92% increase from the same quarter last year [3] Full Year Estimates - For the full year, analysts expect earnings of $3.44 per share and revenue of $4.78 billion, representing changes of -12.47% and +20.96% respectively from the previous year [4] Analyst Estimates and Stock Ratings - Recent changes in analyst estimates for CRWD are crucial as they reflect short-term business trends, with upward revisions indicating positive sentiment towards the company's operations [5] - The Zacks Rank system, which evaluates these estimate changes, currently ranks CRWD at 4 (Sell) [7] Valuation Metrics - CRWD is currently trading at a Forward P/E ratio of 137.3, significantly higher than the industry's average Forward P/E of 70.75 [8] - The company has a PEG ratio of 6.39, compared to the Security industry's average PEG ratio of 3.16 [8] Industry Context - The Security industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 32, placing it in the top 13% of over 250 industries [9]

Core Viewpoint - Alphabet has significantly reduced its stake in CrowdStrike by 83%, indicating a strategic shift in its investment approach within the cybersecurity sector [2][4]. Group 1: Alphabet's Investment Actions - Alphabet sold 83% of its shares in CrowdStrike, decreasing its holdings from 855,789 shares to 74,230 shares over the course of a year [4]. - The decision to sell comes after a period of stability in its investment, as Alphabet had not altered its position in CrowdStrike for three consecutive quarters prior to this sale [4]. Group 2: Performance of CrowdStrike - CrowdStrike's stock has increased by 43% since the end of Q1 2024, outperforming the S&P 500 and Nasdaq Composite, as well as many of its peers in the cybersecurity industry [6]. - Despite a public relations crisis last summer due to software bugs, CrowdStrike's stock has shown resilience and recovered from significant sell-offs [8]. Group 3: Reasons for Alphabet's Decision - Alphabet's decision to sell may be influenced by its recent acquisition of Wiz, which could enhance its competitive position in the cybersecurity market [9][10]. - The current financial guidance from CrowdStrike has not impressed investors, suggesting that Alphabet's timing in selling could be strategic [9]. Group 4: Valuation Insights - CrowdStrike's price-to-sales (P/S) ratio stands at 28.77, making it one of the most expensive stocks in its peer group, trailing only Cloudflare [12][14]. - The valuation of CrowdStrike appears to be stabilizing, with its P/S levels rebounding to pre-sell-off levels from last summer [15]. Group 5: Future Outlook - CrowdStrike is viewed as a compelling opportunity at the intersection of AI and cybersecurity, which are both expanding markets [17].

Industry Overview - The cybersecurity market is projected to witness a CAGR of 12.9% from 2025 to 2030, driven by increasing digital threats and the need for advanced cybersecurity solutions [3] - The rise in cloud deployment, digital transformation, and the proliferation of smart and IoT devices has led to more sophisticated cyberattacks, necessitating enhanced cybersecurity measures [2] Company Analysis: BlackBerry Limited (BB) - BlackBerry has shifted its focus from smartphones to cybersecurity and IoT solutions, with its Secure Communications division including products like Unified Endpoint Management (UEM) and SecuSUITE [4] - In fiscal Q4, BlackBerry's Secure Communications revenue reached $67.3 million, exceeding forecasts, driven by strong performance in AtHoc and UEM solutions [5] - The company has established strong relationships with government agencies, securing a stable revenue stream and credibility in high-trust sectors [6] - BlackBerry has successfully cut approximately $150 million from its run rate and reported an adjusted EBITDA of $39.3 million for fiscal 2025, marking a significant improvement [8] - The expansion of contracts with the Malaysian government enhances BlackBerry's revenue potential and positions its Secure Communications division as a key contributor to overall EBITDA [7] Company Analysis: CrowdStrike Holdings, Inc. (CRWD) - CrowdStrike is a leader in next-generation endpoint protection and has introduced new solutions like Falcon Data Protection to address data security concerns [9] - The company's subscription revenues reached $1.01 billion, reflecting a 27% increase year-over-year, aided by the Falcon Flex Subscription Model [10] - Despite strong growth, CrowdStrike faces challenges due to customer sentiment issues following a global IT outage and has implemented a Customer Commitment Package to retain clients [11] - The company has significantly increased its sales and marketing expenses, which rose nearly ninefold to $1.52 billion in fiscal 2025, alongside a focus on R&D [12][13] Performance Comparison - Over the past month, BlackBerry and CrowdStrike have seen stock gains of 10.5% and 7.6%, respectively [16] - BlackBerry's forward 12-month Price/Sales ratio is 4.21X, significantly lower than CrowdStrike's 22.17X, indicating a more favorable valuation for BlackBerry [17] - Analysts have raised BlackBerry's earnings estimates for the current fiscal year, while CrowdStrike has seen only marginal upward revisions [19][21] Investment Outlook - Both companies are well-positioned to benefit from the growing cybersecurity market, but BlackBerry currently holds a Zacks Rank 1 (Strong Buy), while CrowdStrike has a Zacks Rank 4 (Sell), suggesting BlackBerry may be the better investment choice at this time [22]

When equities, in general, have been all over the place this year, CrowdStrike Holdings, Inc. ( CRWD ) , which is amongst the top 3 largest cybersecurity stocks in the world, hasAnalyst’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 busi ...

Industry Overview - Cybersecurity spending is projected to increase by 15% in 2025, driven by evolving threats, particularly from generative artificial intelligence applications [2] - The need for cybersecurity is expected to grow significantly in the coming years, necessitating businesses to invest more in this area [2] Company Analysis CrowdStrike - CrowdStrike is recognized as a leading player in cloud-based cybersecurity, with an annualized recurring revenue (ARR) of $4.2 billion, reflecting a 23% increase from the previous fiscal year [5] - The company offers a subscription platform composed of 29 software modules, allowing customers to customize their cybersecurity solutions [6] - The introduction of Falcon Flex aims to encourage customers to experiment with more modules, which is crucial for long-term growth, as only 21% of customers currently use eight or more modules [7][8] Rubrik - Rubrik, a newer entrant in the cybersecurity market, reported an ARR of over $1 billion, marking a 39% increase [11] - The company focuses on providing secure solutions for data recovery and preparation against attacks, complementing the offerings of companies like CrowdStrike [10] - Rubrik has recently begun generating positive free cash flow, indicating operational efficiency and potential for scaling [12] Palo Alto Networks - Palo Alto Networks offers a comprehensive range of hardware and software solutions, with a strong focus on acquisitions to enhance its product portfolio [13][14] - The company reported a 34% year-over-year growth in ARR for Next-Generation Security, reaching over $5 billion, and a 19% increase in remaining performance obligations to $13.5 billion [15] - The outlook for Palo Alto Networks remains strong, making it a significant player in the cybersecurity sector [15] Valuation Insights - The valuation of Rubrik is considerably lower than that of CrowdStrike, while being comparable to Palo Alto Networks, suggesting potential for higher growth rates for Rubrik due to its smaller size [16] - Rubrik is considered riskier due to its newcomer status, but it may offer better long-term value for investors willing to take on that risk [17]

Core Viewpoint - CrowdStrike's stock has rebounded significantly after a major disruption caused by a faulty software update in mid-2024, leading to a 49.6% increase in share price within ten months, indicating a recovery and investor confidence in the company's future [1][2][3]. Stock Performance - On July 19, 2024, CrowdStrike's stock closed at $304 per share, and by May 24, 2025, it surged to $455, reflecting a 49.6% increase [2]. - An investment of $1,000 in CrowdStrike stock on the day of the crash would now be worth approximately $1,496, resulting in a gain of nearly $497 [3]. Analyst Sentiment - Stifel analyst Adam Borg raised the price target from $435 to $480 and maintained a 'Buy' rating ahead of the Q1 FY2026 earnings report, citing growth among value-added resellers using CrowdStrike solutions [4]. - Conversely, Mizuho downgraded the stock from 'Outperform' to 'Neutral' with a price target of $425, citing slowing momentum among partners and preferring to wait for a better entry point [5]. Company Actions - CrowdStrike is streamlining operations by appointing Brad Burns as Chief Communications Officer to enhance global messaging [7]. - The company is facing regulatory scrutiny over a $32 million transaction with Carahsoft Technology related to undelivered IRS software [8]. - CrowdStrike plans to cut around 500 jobs, or 5% of its workforce, to improve efficiency while continuing to hire for key strategic roles [8].

Market Performance - The S&P 500 index declined approximately 2.3% this week, while the Dow Jones Industrial Average fell about 2.5% [1] - The Nasdaq index dropped around 2.4%, and the Nasdaq 100 index also saw a decline of about 2.4% [1] - The semiconductor index experienced a significant drop of 4.4%, and the banking index fell approximately 4.2% [1] - The index tracking the seven major U.S. tech stocks decreased by about 2.8%, and the "Trump Tariff Losers Index" fell by 5% [1] - Small-cap stocks declined by 3.3%, while the biotechnology index saw a slight increase of 0.4% [1] Daily Performance - On Friday, the S&P 500 index initially closed down by 0.6%, with the technology sector dropping 1.2% [1] - Other sectors such as telecommunications, consumer discretionary, and financials saw declines of up to 0.9%, while the utilities sector rose by 1.2% [1] - The Nasdaq 100 index initially closed down by 0.9%, with notable declines in stocks like Workday (down 12.4%), Copart (down 11.6%), and Ross Stores (down 9.9%) [1] - Conversely, stocks such as CrowdStrike (up 2.9%), Grail (up 3.6%), and Intuit (up 8.2%) experienced gains [1]