CRWD Should I Buy
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CrowdStrike Holdings Inc (CRWD) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company demonstrates strong financial growth and market leadership in AI cybersecurity, the technical indicators show a bearish trend, and both hedge funds and insiders are selling the stock. Additionally, the options data indicates a bearish sentiment, and the stock is currently trading below key support levels. Given the investor's impatience and unwillingness to wait for optimal entry points, holding off on buying at this time is recommended.
The technical indicators show a bearish trend. The MACD histogram is negative (-1.405), suggesting downward momentum, and the RSI is neutral at 42.568. The stock is trading below its 200-day, 20-day, and 5-day moving averages, indicating a bearish setup. Key support is at 384.027, with resistance at 440.732. The stock closed below its pivot level of 412.38, further confirming the bearish trend.
Strong financial growth in Q3 2026, with revenue up 22.18% YoY and net income improving by 102.10% YoY.
Recognized as Customers' Choice in the 2026 Gartner Peer Insights report for User Authentication.
Analysts view CrowdStrike as resilient to AI-related disruptions, with strong market leadership in AI cybersecurity.
Hedge funds and insiders are selling the stock significantly, with hedge fund selling up 48415.98% and insider selling up 1262.08%.
The stock is underperforming in the broader software sector, which has faced a $2 trillion decline amid AI disruption concerns.
Technical indicators and options data suggest bearish sentiment, with a high put-call ratio and negative price momentum.
In Q3 2026, CrowdStrike reported revenue growth of 22.18% YoY to $1.23 billion. Net income improved significantly by 102.10% YoY to -$33.99 million, and EPS increased by 100% YoY to -0.14. Gross margin also improved slightly to 75.06%, up 0.41% YoY, indicating operational efficiency.
Analyst sentiment is mixed but leans positive. Recent upgrades include Berenberg upgrading the stock to Buy with a $600 price target, citing valuation and sector-leading growth. RBC Capital lowered its price target to $550 from $621 but maintained an Outperform rating. Analysts generally view CrowdStrike as a leader in cybersecurity with strong fundamentals, but concerns over valuation and recent sector underperformance weigh on sentiment.
