Reasons Behind Today's Surge in CrowdStrike Stock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 18 2025
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Source: Fool
CrowdStrike's Stock Surge: Shares of CrowdStrike have risen 10% following positive updates during its Fal.Con keynote, including an optimistic forecast for annual recurring revenue (ARR) growth to at least 20% by 2027.
Analyst Reactions and Growth Strategy: Analysts have raised their price targets for CrowdStrike after the announcement, and the company is focusing on growth through recent acquisitions and partnerships, targeting significant markets in cloud security and AI solutions.
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Analyst Views on CRWD
Wall Street analysts forecast CRWD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CRWD is 562.25 USD with a low forecast of 353.00 USD and a high forecast of 640.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
23 Buy
11 Hold
0 Sell
Moderate Buy
Current: 469.190
Low
353.00
Averages
562.25
High
640.00
Current: 469.190
Low
353.00
Averages
562.25
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.
Long-Term Investment Potential of TSMC and CrowdStrike
- TSMC's Market Leadership: Taiwan Semiconductor Manufacturing (TSMC) holds approximately 72% market share in semiconductor manufacturing, particularly dominating advanced chips for AI-related hardware, ensuring long-term contracts with giants like Nvidia and Apple, thus providing a steady revenue stream.
- Ongoing Investment and Expansion: TSMC plans to increase capital expenditures to between $52 billion and $56 billion by 2026, demonstrating its commitment to R&D and factory development, which further solidifies its industry leadership and enhances future competitiveness.
- CrowdStrike's Customer Base: CrowdStrike protects 300 of the Fortune 500 and 543 of the Fortune 1,000 companies, with long-term contracts and high switching costs providing a stable revenue source, ensuring its longevity in the cybersecurity market.
- Cybersecurity Industry Growth Potential: According to McKinsey, the cybersecurity industry could grow to $2 trillion, making CrowdStrike's reported $1.2 billion revenue in Q3 appear modest compared to its future potential as market demand increases, highlighting its significant growth prospects.
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CrowdStrike's Future Growth Potential Analysis
- Market Potential: CrowdStrike's management anticipates the total addressable market in cybersecurity will expand from $140 billion to $300 billion by 2030, indicating significant growth opportunities, with CrowdStrike positioned to capitalize as an industry leader.
- Revenue Growth Outlook: Wall Street analysts project a 22% year-over-year revenue growth for CrowdStrike in FY 2027, suggesting the company can maintain strong growth momentum in the face of AI-driven cyber threats, despite slower revenue growth compared to its stock price surge in 2025.
- Valuation Concerns: With a price-to-sales ratio of 25, CrowdStrike's stock, while performing well in 2025, raises concerns about whether its valuation is too high given that revenue growth has not kept pace, potentially affecting investor confidence moving forward.
- Long-Term Investment Opportunity: Despite challenges related to valuation and growth rates, CrowdStrike is still viewed as a solid long-term investment, with expectations of mid-teens appreciation in 2026, which should be sufficient to outperform the market.
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