CrowdStrike Share Trim Amid Record High Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: CNBC
- Trim Strategy: Jim Cramer's Charitable Trust sold 95 shares of CrowdStrike at approximately $205 each, reducing its portfolio weight from 4.5% to 4%, indicating a cautious approach to market fluctuations.
- Stock Performance: CrowdStrike rose about 6% on Monday, reaching a record high, and has not had a down day since June 24, rallying 22% over the past seven trading sessions, reflecting strong market demand for its AI cybersecurity solutions.
- Portfolio Dynamics: This trim positions CrowdStrike as the third-largest holding in the portfolio, behind only Apple and Amazon, highlighting its significance in the overall investment strategy while locking in approximately 140% gains since November 2024.
- Market Outlook: Despite optimism regarding the AI cybersecurity narrative, Cramer emphasizes the importance of maintaining investment discipline after substantial gains to navigate potential future market volatility.
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Analyst Views on CRWD
Wall Street analysts forecast CRWD stock price to rise
34 Analyst Rating
23 Buy
11 Hold
0 Sell
Moderate Buy
Current: 199.380
Low
353.00
Averages
559.71
High
640.00
Current: 199.380
Low
353.00
Averages
559.71
High
640.00
About CRWD
CrowdStrike Holdings, Inc. is a global cybersecurity company. The Company provides a cloud-native platform for protecting critical areas of enterprise risk - endpoints and cloud workloads, identity, and data. The Company's artificial intelligence (AI)-native CrowdStrike Falcon platform is a cloud-native unified platform built with AI at the core, capable of harnessing security and enterprise data to deliver highly modular solutions through a single lightweight sensor. Using cloud-scale AI, its Security Cloud enriches and correlates cybersecurity events with indicators of attack, threat intelligence, and enterprise data (including data from across endpoints, workloads, identities, DevOps, IT assets, and configurations) to create actionable data, identify shifts in adversary tactics, and automatically prevent threats in real-time across its customer base. It sells its Falcon platform via a partner-first subscription model to organizations of all sizes across multiple industries globally.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CrowdStrike Shares Rise for Seven Days, Strong Earnings Report
- Stock Performance: CrowdStrike shares closed about 2.8% higher on Monday, marking a seven-day winning streak that reflects optimistic market sentiment and may attract more investor interest.
- Stock Split Impact: The company executed a 4-for-1 stock split on July 2, which, while leaving market value unchanged, lowered the per-share price, potentially enhancing trading liquidity and making it more accessible to retail investors.
- Financial Performance: Entering fiscal 2027, CrowdStrike reported strong momentum with a 26% year-over-year revenue increase to $1.39 billion, while adjusted operating margin expanded from 18.5% to 23.5%, indicating significant improvement in profitability.
- Market Position: As enterprises consolidate cybersecurity spending around fewer vendors, CrowdStrike's platform spans endpoint, identity, cloud, and security operations, positioning the company to capture a larger share of customer security budgets.
See More
Cybersecurity Stocks Show Remarkable Recovery
- Market Rebound: CrowdStrike and Palo Alto Networks have seen their stock prices surge by 68% and 88% respectively over a few months, indicating a renewed market recognition of cybersecurity, particularly against the backdrop of skyrocketing AI demand, which has driven this strong rebound in their stock prices.
- Investment Strategy Adjustment: Jim Cramer heavily invested in CrowdStrike in March after its stock hit a 52-week low of $86, and recently adjusted its portfolio weighting to 4% to realize profits, while trimming Palo Alto Networks, reflecting a focus on risk management.
- Technology-Driven Growth: CrowdStrike CEO George Kurtz noted that the role of cybersecurity has shifted from risk management to being a strategic accelerator for AI adoption, indicating that the demand for security solutions will continue to grow as enterprises implement AI, driving long-term growth in the cybersecurity sector.
- Market Demand Outlook: Major hyperscalers like Amazon, Alphabet, Microsoft, and Meta are projected to invest $750 billion in AI infrastructure by 2025, highlighting that cybersecurity companies will play a critical role in the future AI ecosystem, ensuring data security and preventing cyberattacks.
See More
Samsung's Earnings Beat Expectations but Shares Plummet
- Earnings Surprise: Samsung Electronics reported quarterly profits exceeding both Nvidia and Apple, with an expected operating profit surge of 1,800%, yet failed to meet Wall Street's high expectations for AI demand, resulting in an 8% drop in share price.
- Market Reaction: Despite strong earnings, investor concerns over AI spending led to a 5% decline in the KOSPI index, impacting other semiconductor stocks like SK Hynix and Micron Technology, which also saw significant sell-offs.
- Memory Chip Price Surge: The ongoing artificial demand has driven memory chip prices up, resulting in stock price increases of 220% for Micron and 570% for Sandisk this year, but investors are worried that such growth may not be sustainable, potentially affecting future profitability.
- Uncertain Industry Outlook: As Chinese AI startup Deepseek develops its own chips to circumvent U.S. export bans, market concerns about reliance on Nvidia for future growth have intensified, further heightening investor anxiety.
See More
CrowdStrike Executes 4-for-1 Stock Split, Making Shares More Accessible
- Stock Split Impact: On July 1, CrowdStrike executed a 4-for-1 stock split, reducing its share price from $767 to $194, making it more accessible for small investors; however, this does not change the company's underlying value, and near-term upside may be limited.
- Significant Revenue Growth: As of Q1 FY2027, CrowdStrike reported total annual recurring revenue (ARR) of $5.5 billion, a 24% year-over-year increase, with Falcon Flex's ARR doubling to $1.9 billion, indicating strong customer adoption of its flexible subscription model.
- Optimistic Market Outlook: CrowdStrike anticipates its addressable market will grow to $325 billion in the long term, and management's forecast suggests ARR could reach $20 billion by FY2036, highlighting substantial long-term growth potential in the cybersecurity sector.
- Valuation Pressure: Although the stock split makes CrowdStrike shares more appealing, its current price-to-sales ratio of 38.7 is significantly higher than its competitors, suggesting that investors may face disappointment in the short term, necessitating a long-term investment strategy for potential positive returns.
See More
CrowdStrike Executes 4-for-1 Stock Split to Enhance Affordability
- Stock Split Impact: On July 1, CrowdStrike executed a 4-for-1 stock split, reducing its share price from $767 to $194, making it more accessible for retail investors and employees, although this does not alter the company's underlying value.
- Annual Recurring Revenue Surge: In Q1 of fiscal 2027, CrowdStrike's AI Detection and Response (AIDR) module saw a staggering 250% increase in annual recurring revenue (ARR) from the previous quarter, driving total ARR to $5.5 billion, a 24% year-over-year growth, indicating strong demand for its flexible subscription model.
- Market Outlook: CrowdStrike anticipates its addressable market will grow to $325 billion in the long term, coupled with management's forecast of ARR reaching $20 billion by fiscal 2036, highlighting the company's long-term growth potential in the cybersecurity sector.
- Valuation Caution: Despite the stock split enhancing affordability, CrowdStrike's current price-to-sales ratio of 38.7 is significantly higher than its competitors, potentially limiting short-term price appreciation, prompting investors to carefully assess the risks associated with its high valuation.
See More
CrowdStrike Executes 4-for-1 Stock Split
- Stock Split Impact: On July 1, CrowdStrike executed a 4-for-1 stock split, reducing its share price from $767 to $194, making it more accessible for small investors; however, this does not alter the company's fundamental value, suggesting limited short-term upside potential.
- Significant Revenue Growth: As of Q1 FY2027, CrowdStrike reported total annual recurring revenue (ARR) of $5.5 billion, a 24% year-over-year increase, with Falcon Flex's ARR doubling to $1.9 billion, indicating strong customer adoption of its flexible subscription model.
- Optimistic Market Outlook: CrowdStrike anticipates its addressable market will grow to $325 billion in the long term, and management's forecast of reaching $20 billion in ARR by FY2036 highlights the company's substantial growth potential in the cybersecurity sector.
- Cautious Investment Advice: While the stock split makes CrowdStrike's shares more appealing, its price-to-sales ratio of 38.7 is the highest since its IPO in 2019, prompting investors to exercise caution regarding short-term investments, as they may face disappointment.
See More
CrowdStrike Shares Rise for Seven Days, Strong Earnings Report
- Stock Performance: CrowdStrike shares closed about 2.8% higher on Monday, marking a seven-day winning streak that reflects optimistic market sentiment and may attract more investor interest.
- Stock Split Impact: The company executed a 4-for-1 stock split on July 2, which, while leaving market value unchanged, lowered the per-share price, potentially enhancing trading liquidity and making it more accessible to retail investors.
- Financial Performance: Entering fiscal 2027, CrowdStrike reported strong momentum with a 26% year-over-year revenue increase to $1.39 billion, while adjusted operating margin expanded from 18.5% to 23.5%, indicating significant improvement in profitability.
- Market Position: As enterprises consolidate cybersecurity spending around fewer vendors, CrowdStrike's platform spans endpoint, identity, cloud, and security operations, positioning the company to capture a larger share of customer security budgets.
See More
Cybersecurity Stocks Show Remarkable Recovery
- Market Rebound: CrowdStrike and Palo Alto Networks have seen their stock prices surge by 68% and 88% respectively over a few months, indicating a renewed market recognition of cybersecurity, particularly against the backdrop of skyrocketing AI demand, which has driven this strong rebound in their stock prices.
- Investment Strategy Adjustment: Jim Cramer heavily invested in CrowdStrike in March after its stock hit a 52-week low of $86, and recently adjusted its portfolio weighting to 4% to realize profits, while trimming Palo Alto Networks, reflecting a focus on risk management.
- Technology-Driven Growth: CrowdStrike CEO George Kurtz noted that the role of cybersecurity has shifted from risk management to being a strategic accelerator for AI adoption, indicating that the demand for security solutions will continue to grow as enterprises implement AI, driving long-term growth in the cybersecurity sector.
- Market Demand Outlook: Major hyperscalers like Amazon, Alphabet, Microsoft, and Meta are projected to invest $750 billion in AI infrastructure by 2025, highlighting that cybersecurity companies will play a critical role in the future AI ecosystem, ensuring data security and preventing cyberattacks.
See More
Samsung's Earnings Beat Expectations but Shares Plummet
- Earnings Surprise: Samsung Electronics reported quarterly profits exceeding both Nvidia and Apple, with an expected operating profit surge of 1,800%, yet failed to meet Wall Street's high expectations for AI demand, resulting in an 8% drop in share price.
- Market Reaction: Despite strong earnings, investor concerns over AI spending led to a 5% decline in the KOSPI index, impacting other semiconductor stocks like SK Hynix and Micron Technology, which also saw significant sell-offs.
- Memory Chip Price Surge: The ongoing artificial demand has driven memory chip prices up, resulting in stock price increases of 220% for Micron and 570% for Sandisk this year, but investors are worried that such growth may not be sustainable, potentially affecting future profitability.
- Uncertain Industry Outlook: As Chinese AI startup Deepseek develops its own chips to circumvent U.S. export bans, market concerns about reliance on Nvidia for future growth have intensified, further heightening investor anxiety.
See More
CrowdStrike Executes 4-for-1 Stock Split, Making Shares More Accessible
- Stock Split Impact: On July 1, CrowdStrike executed a 4-for-1 stock split, reducing its share price from $767 to $194, making it more accessible for small investors; however, this does not change the company's underlying value, and near-term upside may be limited.
- Significant Revenue Growth: As of Q1 FY2027, CrowdStrike reported total annual recurring revenue (ARR) of $5.5 billion, a 24% year-over-year increase, with Falcon Flex's ARR doubling to $1.9 billion, indicating strong customer adoption of its flexible subscription model.
- Optimistic Market Outlook: CrowdStrike anticipates its addressable market will grow to $325 billion in the long term, and management's forecast suggests ARR could reach $20 billion by FY2036, highlighting substantial long-term growth potential in the cybersecurity sector.
- Valuation Pressure: Although the stock split makes CrowdStrike shares more appealing, its current price-to-sales ratio of 38.7 is significantly higher than its competitors, suggesting that investors may face disappointment in the short term, necessitating a long-term investment strategy for potential positive returns.
See More
CrowdStrike Executes 4-for-1 Stock Split to Enhance Affordability
- Stock Split Impact: On July 1, CrowdStrike executed a 4-for-1 stock split, reducing its share price from $767 to $194, making it more accessible for retail investors and employees, although this does not alter the company's underlying value.
- Annual Recurring Revenue Surge: In Q1 of fiscal 2027, CrowdStrike's AI Detection and Response (AIDR) module saw a staggering 250% increase in annual recurring revenue (ARR) from the previous quarter, driving total ARR to $5.5 billion, a 24% year-over-year growth, indicating strong demand for its flexible subscription model.
- Market Outlook: CrowdStrike anticipates its addressable market will grow to $325 billion in the long term, coupled with management's forecast of ARR reaching $20 billion by fiscal 2036, highlighting the company's long-term growth potential in the cybersecurity sector.
- Valuation Caution: Despite the stock split enhancing affordability, CrowdStrike's current price-to-sales ratio of 38.7 is significantly higher than its competitors, potentially limiting short-term price appreciation, prompting investors to carefully assess the risks associated with its high valuation.
See More
CrowdStrike Executes 4-for-1 Stock Split
- Stock Split Impact: On July 1, CrowdStrike executed a 4-for-1 stock split, reducing its share price from $767 to $194, making it more accessible for small investors; however, this does not alter the company's fundamental value, suggesting limited short-term upside potential.
- Significant Revenue Growth: As of Q1 FY2027, CrowdStrike reported total annual recurring revenue (ARR) of $5.5 billion, a 24% year-over-year increase, with Falcon Flex's ARR doubling to $1.9 billion, indicating strong customer adoption of its flexible subscription model.
- Optimistic Market Outlook: CrowdStrike anticipates its addressable market will grow to $325 billion in the long term, and management's forecast of reaching $20 billion in ARR by FY2036 highlights the company's substantial growth potential in the cybersecurity sector.
- Cautious Investment Advice: While the stock split makes CrowdStrike's shares more appealing, its price-to-sales ratio of 38.7 is the highest since its IPO in 2019, prompting investors to exercise caution regarding short-term investments, as they may face disappointment.
See More
