CRWD Stock: Seize the Opportunity or Caution on Valuation?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 17 hours ago
0mins
Should l Buy CRWD?
Source: Marketbeat
Stock Performance: CrowdStrike Holdings Inc. (CRWD) saw a 4.4% increase in stock price recently, but concerns remain about its valuation, especially following a strong earnings report that did not meet investor expectations.
Customer Growth: The company continues to grow its annual recurring revenue (ARR) by adding customers to its Falcon platform, with 49% of its customers using multiple modules, indicating a strong customer retention strategy.
Market Sentiment: Analysts maintain a cautiously bullish outlook on CRWD, with a consensus rating of "Moderate Buy" and a price target suggesting a 29% upside, despite some recent downgrades in price targets.
Valuation Concerns: Investors are worried about the stock's high valuation and the potential impact of competition from companies like Microsoft, which offers its own security solutions, raising questions about CrowdStrike's long-term growth prospects.
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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: 414.285
Low
353.00
Averages
559.71
High
640.00
Current: 414.285
Low
353.00
Averages
559.71
High
640.00
About CRWD
CrowdStrike Holdings, Inc. is a global cybersecurity company that provides cloud-delivered protection of endpoints, cloud workloads, identity and data. Its Falcon platform is designed for cybersecurity consolidation, purpose-built to stop breaches. The platforms collect and integrate data from across the enterprise, including endpoints, cloud workloads, identities, and third-party sources. It offers 29 cloud modules on its Falcon platform via a software as a service (SaaS) subscription-based model that spans multiple large markets, including corporate endpoint and cloud workload security, managed security services, security and vulnerability management, information technology (IT) operations management, identity protection, next-generation security information and event management (SIEM) and log management, threat intelligence services, data protection, SaaS security posture management, automation and response (SOAR) and artificial intelligence powered workflow automation, and others.
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.
Analysis of the Reasons Behind Software Stock Pullback
- Market Sentiment Shift: In 2025, Palantir Technologies has seen its stock price drop about 22%, while Adobe, Salesforce, and ServiceNow have all slid between 25% and 30%, indicating increasing investor concerns about software stocks despite strong performance reports from these companies.
- Valuation Risk Emergence: With the S&P 500 climbing 78% from 2023 to 2025, many software stocks have run ahead of their underlying fundamentals, leading to a market reassessment of these high-valuation stocks, which could further depress prices.
- Misunderstanding of AI Impact: While AI is viewed as a potential disruptive force, analysis suggests that its application is actually helping incumbents enhance their competitive advantages rather than simply threatening their market positions, indicating that market fears regarding AI may be misguided.
- Long-Term Growth Potential: Despite Palantir's stock price decline year-to-date, it has risen over 80% since the beginning of 2025, reflecting strong revenue growth and profitability, suggesting market recognition of its long-term growth potential.
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Underlying Reasons for Software Stock Sell-off
- Market Sentiment Shift: In 2026, Palantir Technologies' stock has dropped about 22%, while shares of Adobe, Salesforce, and ServiceNow have slid between 25% and 30%, indicating a growing panic among investors despite these companies reporting strong results.
- Valuation Risk Emergence: With the S&P 500 climbing 78% from 2023 to 2025, many software stocks have seen their valuations exceed underlying fundamentals, prompting a market reassessment that has led to recent sell-offs.
- Misunderstanding AI's Impact: While investors fear AI's potential to disrupt the software industry, companies like Palantir and ServiceNow possess complex integrations that make it difficult for competitors to replicate their software, suggesting AI may actually enhance their competitive advantages.
- Uncertain Future Trajectory: Although the current sell-off in software stocks may be justified, the market must remain cautious of valuation risks, particularly with high price-to-sales ratios in companies like Snowflake, CrowdStrike, and Shopify, which could indicate further downside potential.
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CrowdStrike Expands Strategic Alliance with Microsoft for Falcon Platform
- Marketplace Integration: CrowdStrike's Falcon platform is now available on Microsoft Marketplace, enabling organizations with full Microsoft Azure Consumption Commitment eligibility to deploy the platform faster, thereby simplifying procurement and billing processes and enhancing operational efficiency.
- Increased Financial Flexibility: Customers can apply existing Azure Consumption Commitment funds to purchase the Falcon platform, a move that not only accelerates security implementation but also reduces procurement friction, maximizing the impact of their cloud investments.
- Security as a Foundation: Microsoft’s commercial business CEO Judson Althoff emphasized that security is foundational for AI transformation, and this integration allows customers to optimize cloud spending while maintaining a rigorous security posture.
- Market Sentiment Shift: Over the past 24 hours, retail sentiment on Stocktwits for CRWD shares shifted from 'bearish' to 'neutral', while sentiment for MSFT shares declined from 'neutral' to 'bearish', indicating differing market perceptions of the two companies' stocks.
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- Price Range Analysis: CIBR ETF's 52-week low is $55.02 per share and high is $78.34, with the latest trade at $65.80, indicating volatility and shifts in investor sentiment within the ETF market.
- Technical Analysis Tool: Comparing the current share price to the 200-day moving average provides valuable insights for investors, aiding in market trend assessment and potential buying opportunities.
- ETF Unit Trading Mechanism: ETFs trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting liquidity and market performance of the ETF.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding helps identify ETFs with notable inflows (new units created) or outflows (old units destroyed), assessing their impact on underlying assets and market dynamics.
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Microsoft Expands Partnership with CrowdStrike for Falcon Platform
- Partnership Expansion: Microsoft and CrowdStrike announced an expansion of their existing agreement, allowing companies of all sizes to purchase CrowdStrike's Falcon platform through the Microsoft Marketplace, enhancing cybersecurity capabilities.
- Procurement Facilitation: Companies can use their existing Microsoft Azure consumption commitment to buy CrowdStrike's cybersecurity platform, thereby removing procurement friction and maximizing the impact of their cloud investments, which enhances security teams' responsiveness.
- Market Demand Response: CrowdStrike CEO George Kurtz stated that ongoing collaboration with Microsoft is broadening their ecosystem to meet the market's broad-based demand for the Falcon platform, further solidifying their market position.
- Positive Market Reaction: Following the announcement of the partnership expansion, shares of both Microsoft and CrowdStrike rose, reflecting market optimism and confidence in this strategic collaboration.
See More
CrowdStrike Expands Strategic Alliance with Microsoft
- Streamlined Procurement: The expansion of the strategic alliance between CrowdStrike and Microsoft allows customers to purchase the Falcon platform using their existing Azure Consumption Commitment on Microsoft Marketplace, thereby accelerating procurement processes and simplifying billing management, which enhances deployment efficiency.
- Optimized Cloud Spending: By applying CrowdStrike purchases toward Azure Consumption Commitment, customers can not only optimize their cloud spending but also gain greater flexibility in security measures, ensuring competitiveness in a rapidly changing market.
- Security and Innovation Integration: Microsoft’s commercial business CEO Judson Althoff emphasizes that security is foundational for AI transformation, and the integration of CrowdStrike's Falcon platform with Azure helps customers optimize cloud resource usage while adopting rigorous security postures.
- Market Demand Response: CrowdStrike founder George Kurtz highlights that by removing procurement friction, customers can maximize the impact of their existing cloud investments, meeting the growing market demand for the Falcon platform and driving rapid advancements in security technology.
See More
Analysis of the Reasons Behind Software Stock Pullback
- Market Sentiment Shift: In 2025, Palantir Technologies has seen its stock price drop about 22%, while Adobe, Salesforce, and ServiceNow have all slid between 25% and 30%, indicating increasing investor concerns about software stocks despite strong performance reports from these companies.
- Valuation Risk Emergence: With the S&P 500 climbing 78% from 2023 to 2025, many software stocks have run ahead of their underlying fundamentals, leading to a market reassessment of these high-valuation stocks, which could further depress prices.
- Misunderstanding of AI Impact: While AI is viewed as a potential disruptive force, analysis suggests that its application is actually helping incumbents enhance their competitive advantages rather than simply threatening their market positions, indicating that market fears regarding AI may be misguided.
- Long-Term Growth Potential: Despite Palantir's stock price decline year-to-date, it has risen over 80% since the beginning of 2025, reflecting strong revenue growth and profitability, suggesting market recognition of its long-term growth potential.
See More
Underlying Reasons for Software Stock Sell-off
- Market Sentiment Shift: In 2026, Palantir Technologies' stock has dropped about 22%, while shares of Adobe, Salesforce, and ServiceNow have slid between 25% and 30%, indicating a growing panic among investors despite these companies reporting strong results.
- Valuation Risk Emergence: With the S&P 500 climbing 78% from 2023 to 2025, many software stocks have seen their valuations exceed underlying fundamentals, prompting a market reassessment that has led to recent sell-offs.
- Misunderstanding AI's Impact: While investors fear AI's potential to disrupt the software industry, companies like Palantir and ServiceNow possess complex integrations that make it difficult for competitors to replicate their software, suggesting AI may actually enhance their competitive advantages.
- Uncertain Future Trajectory: Although the current sell-off in software stocks may be justified, the market must remain cautious of valuation risks, particularly with high price-to-sales ratios in companies like Snowflake, CrowdStrike, and Shopify, which could indicate further downside potential.
See More
CrowdStrike Expands Strategic Alliance with Microsoft for Falcon Platform
- Marketplace Integration: CrowdStrike's Falcon platform is now available on Microsoft Marketplace, enabling organizations with full Microsoft Azure Consumption Commitment eligibility to deploy the platform faster, thereby simplifying procurement and billing processes and enhancing operational efficiency.
- Increased Financial Flexibility: Customers can apply existing Azure Consumption Commitment funds to purchase the Falcon platform, a move that not only accelerates security implementation but also reduces procurement friction, maximizing the impact of their cloud investments.
- Security as a Foundation: Microsoft’s commercial business CEO Judson Althoff emphasized that security is foundational for AI transformation, and this integration allows customers to optimize cloud spending while maintaining a rigorous security posture.
- Market Sentiment Shift: Over the past 24 hours, retail sentiment on Stocktwits for CRWD shares shifted from 'bearish' to 'neutral', while sentiment for MSFT shares declined from 'neutral' to 'bearish', indicating differing market perceptions of the two companies' stocks.
See More
CIBR ETF 52-Week Price Analysis
- Price Range Analysis: CIBR ETF's 52-week low is $55.02 per share and high is $78.34, with the latest trade at $65.80, indicating volatility and shifts in investor sentiment within the ETF market.
- Technical Analysis Tool: Comparing the current share price to the 200-day moving average provides valuable insights for investors, aiding in market trend assessment and potential buying opportunities.
- ETF Unit Trading Mechanism: ETFs trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting liquidity and market performance of the ETF.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding helps identify ETFs with notable inflows (new units created) or outflows (old units destroyed), assessing their impact on underlying assets and market dynamics.
See More
Microsoft Expands Partnership with CrowdStrike for Falcon Platform
- Partnership Expansion: Microsoft and CrowdStrike announced an expansion of their existing agreement, allowing companies of all sizes to purchase CrowdStrike's Falcon platform through the Microsoft Marketplace, enhancing cybersecurity capabilities.
- Procurement Facilitation: Companies can use their existing Microsoft Azure consumption commitment to buy CrowdStrike's cybersecurity platform, thereby removing procurement friction and maximizing the impact of their cloud investments, which enhances security teams' responsiveness.
- Market Demand Response: CrowdStrike CEO George Kurtz stated that ongoing collaboration with Microsoft is broadening their ecosystem to meet the market's broad-based demand for the Falcon platform, further solidifying their market position.
- Positive Market Reaction: Following the announcement of the partnership expansion, shares of both Microsoft and CrowdStrike rose, reflecting market optimism and confidence in this strategic collaboration.
See More
CrowdStrike Expands Strategic Alliance with Microsoft
- Streamlined Procurement: The expansion of the strategic alliance between CrowdStrike and Microsoft allows customers to purchase the Falcon platform using their existing Azure Consumption Commitment on Microsoft Marketplace, thereby accelerating procurement processes and simplifying billing management, which enhances deployment efficiency.
- Optimized Cloud Spending: By applying CrowdStrike purchases toward Azure Consumption Commitment, customers can not only optimize their cloud spending but also gain greater flexibility in security measures, ensuring competitiveness in a rapidly changing market.
- Security and Innovation Integration: Microsoft’s commercial business CEO Judson Althoff emphasizes that security is foundational for AI transformation, and the integration of CrowdStrike's Falcon platform with Azure helps customers optimize cloud resource usage while adopting rigorous security postures.
- Market Demand Response: CrowdStrike founder George Kurtz highlights that by removing procurement friction, customers can maximize the impact of their existing cloud investments, meeting the growing market demand for the Falcon platform and driving rapid advancements in security technology.
See More
