Latest news with #CRWD
Yahoo
15 hours ago
- Business
- Yahoo
Can CrowdStrike Stock Keep Moving Higher in 2025?
CrowdStrike's all-in-one Falcon cybersecurity platform is increasingly popular for businesses, and it has a substantial long-term growth runway. However, CrowdStrike stock is trading at a record high following a 40% gain this year, and its valuation is starting to look a little rich. Investors hoping for more upside in 2025 might be left disappointed, but there is still an opportunity here for those with a longer time horizon. 10 stocks we like better than CrowdStrike › CrowdStrike (NASDAQ: CRWD) is one of the world's biggest cybersecurity companies. Its stock has soared 40% year to date, but its current valuation might be a barrier to further upside for the remainder of the year. With that said, investors who are willing to take a longer-term view could still reap significant rewards by owning a slice of CrowdStrike. The company's holistic all-in-one platform is extremely popular with enterprise customers, and its annual recurring revenue (ARR) could more than double over the next six years based on a forecast from management. The cybersecurity industry is quite fragmented, meaning many providers often specialize in single products like cloud security or identity security, so businesses have to use multiple vendors to achieve adequate protection. CrowdStrike is an outlier in that regard because its Falcon platform is a true all-in-one solution that allows its customers to consolidate their entire cybersecurity stack with one vendor. Falcon uses a cloud-based architecture, which means organizations don't need to install software on every computer and device. It also relies heavily on artificial intelligence (AI) to automate threat detection and incident response, so it operates seamlessly in the background and requires minimal intervention, if any, from the average employee. To lighten the workload for cybersecurity managers specifically, CrowdStrike launched a virtual assistant in 2023 called Charlotte AI. It eliminates alert fatigue by autonomously filtering threats, which means human team members only have to focus on legitimate risks to their organization. Charlotte AI is 98% accurate when it comes to triaging threats, and the company says it's saving managers more than 40 hours per week on average right now. Falcon features 30 different modules (products), so businesses can put together a custom cybersecurity solution to suit their needs. At the end of the company's fiscal 2026 first quarter (ended April 30), a record 48% of its customers were using six or more modules, up from 44% in the year-ago period. It launched a new subscription option in 2023 called Flex, which allows businesses to shift their annual contracted spending among different Falcon modules as their needs change. This can save customers substantial amounts of money, and it also entices them to try modules they might not have otherwise used, which can lead to increased spending over the long term. This is driving what management calls "reflexes," which describes Flex customers who rapidly chew through their budgets and come back for more. The company says 39 Flex customers recently exhausted their budgets within the first five months of their 35-month contracts, and each of them came back to expand their spending. It ended the fiscal 2026 first quarter with a record $4.4 billion in ARR, which was up 22% year over year. That growth has slowed over the last few quarters, mainly because of the major Falcon outage on July 19 last year, which crashed 8.5 million customer computers. Management doesn't anticipate any long-term effects from the incident (which I'll discuss further in a moment) because Falcon is so valuable to customers, but the company did offer customer choice packages to affected businesses that included discounted Flex subscriptions. This is dealing a temporary blow to revenue growth. Here's where things get a little sticky for CrowdStrike. Its stock is up over 40% this year and is trading at a record high, but the strong move has pushed its price-to-sales ratio (P/S) up to 29.1 as of June 24. That makes it significantly more expensive than any of its peers in the AI cybersecurity space: This premium valuation might be a barrier to further upside for the rest of this year, and it seems Wall Street agrees. The Wall Street Journal tracks 53 analysts who cover the stock, and their average price target is $481.95, which is slightly under where it's trading now, implying there could be near-term downside. But there could still be an opportunity here for longer-term investors. As I mentioned earlier, management doesn't expect any lingering impacts from the Falcon outage last year because it continues to reiterate its goal to reach $10 billion in ARR by fiscal 2031. That represents potential growth of 127% from the current ARR of $4.4 billion, and if the forecast comes to fruition, it could fuel strong returns for the stock over the next six years. Plus, $10 billion is still a fraction of CrowdStrike's estimated addressable market of $116 billion today -- a figure management expects to more than double to $250 billion over the next few years. So while I don't think there's much upside on the table for CrowdStrike in the remainder of 2025, those who can hold on to it for the next six years and beyond still have a solid investment opportunity. Before you buy stock in CrowdStrike, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and CrowdStrike wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,731!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $945,846!* Now, it's worth noting Stock Advisor's total average return is 818% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike and Zscaler. The Motley Fool recommends Palo Alto Networks. The Motley Fool has a disclosure policy. Can CrowdStrike Stock Keep Moving Higher in 2025? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16 hours ago
- Business
- Yahoo
Jim Cramer Says 'CrowdStrike's Terrific'
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is one of the 14 stocks Jim Cramer recently shared insights on. During the episode, a caller, up 649% on a 2020 CrowdStrike purchase, mentioned that they sold one-third after it reached 10% of their portfolio, recovered principal and profit, and asked whether to hold or take additional gains now that it represents 8%. Cramer replied: 'Many disciplines involved here. Obviously, you exercised the first discipline, that was terrific. Next discipline: You're a little bit too overweight in CrowdStrike, but I do like CrowdStrike very much. Why don't you take it down a percent, just take it down to 7, and then I think you let it go. It's a little bit more like what we do with the Chaitable Trust… You know, I think CrowdStrike's terrific.' Security personnel at their consoles, monitoring a global network of threats in real-time. CrowdStrike (NASDAQ:CRWD) delivers a cybersecurity platform that provides cloud-based protection across endpoints, cloud workloads, identity, and data. The company's services include threat intelligence, AI-driven automation, and security operations. While we acknowledge the potential of CRWD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Is CrowdStrike Holdings Stock Outperforming the Dow?
Austin, Texas-based CrowdStrike Holdings, Inc. (CRWD) operates as a cybersecurity solutions provider. Its unified platform offers cloud-delivered protection of endpoints, cloud workloads, identity, and data. It commands a market cap of $121 billion and is a leader in next-generation endpoint protection, threat intelligence, and cyber attack response services. Companies worth $10 billion are generally described as "large-cap stocks." CrowdStrike fits right into that category, reflecting its significant presence, influence, and dominance in the cybersecurity industry. Tesla's Robotaxis Reportedly Sped and Veered Into the Wrong Lanes. Does This Crush the Bull Case for TSLA Stock? Dear Micron Stock Fans, Mark Your Calendars for June 25 Is United Health Stock a Buy, Hold or Sell for July 2025? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! CRWD touched its all-time high of $500.41 in yesterday's trading session before slightly pulling back. The stock has soared 28.4% over the past three months, significantly outperforming the Dow Jones Industrial Average's ($DOWI) marginal 93 bps uptick during the same time frame. Longer term, CRWD stock has surged 44.4% on a YTD basis and 27.8% over the past 52 weeks, outperforming Dow's 1% uptick in 2025 and 9.9% gains over the past year. To confirm the bullish trend, CRWD stock has traded mostly above its 50-day moving average since mid-September and above its 200-day moving average since early November 2024, with some fluctuations. CrowdStrike Holdings' stock prices dropped 5.8% in the trading session after the release of its mixed Q1 results on Jun. 3. The company's annual recurring revenues surged 22% year-over-year to $4.4 billion, of which $193.8 million were added during the quarter. The company's total revenues for the quarter increased by an impressive 19.8% year-over-year to $1.1 billion; however, this number fell short of the Street's expectations by a small margin. Meanwhile, its adjusted EPS dropped 7.6% compared to the year-ago quarter to $0.73, but surpassed the consensus estimates by a significant margin. CrowdStrike has also outperformed its peer, Palo Alto Networks, Inc.'s (PANW) 12.3% gains in 2025 and a 26.6% surge over the past 52 weeks. Among the 46 analysts covering the CRWD stock, the consensus rating is a 'Moderate Buy.' As of writing, the stock is trading above its mean price target of $478.86. On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
This Cybersecurity Stock Is Beating the Market in 2025. Is It Still Worth Buying Hand Over Fist?
CrowdStrike stock has the market's attention even though the company is seeing effects from last year's IT outage. The cybersecurity specialist's valuation is elevated even though its earnings are expected to contract in fiscal 2026. The good news is that CrowdStrike should see solid earnings growth once again, beginning next year. 10 stocks we like better than CrowdStrike › The tech-laden Nasdaq Composite index is up roughly 3% so far this year as stocks in the technology sector come under pressure from macroeconomic and geopolitical factors. However, certain stocks continue to do well despite the broader market's weakness. Cybersecurity specialist CrowdStrike (NASDAQ: CRWD) posted respectable gains of 44% so far in 2025, far outpacing the tech-laden index. Let's see why that has been the case and check if this cybersecurity stock is still worth buying. A defective software update from CrowdStrike knocked out global IT systems on July 19 last year. The company faced lawsuits because of the outage, and offered compensation packages to customers in the aftermath of the incident. One segment of the business still being hit is its customer choice program (CCP), which gives its customers the flexibility to purchase more of its solutions, extend the duration of their contracts, or both. The compensation package offered to clients hit this program's margins, impacting CrowdStrike's revenue and earnings growth. The company's non-GAAP (adjusted) net income in the first quarter of fiscal 2026 (which ended on April 30) fell 8% year over year to $0.73 per share. On the bright side, analysts expected a bigger decline and were forecasting $0.65 per share in earnings, suggesting that the impact of the compensation package isn't as bad as the market feared. It helps, too, that CrowdStrike delivered respectable year-over-year revenue growth of 20% to $1.1 billion. CrowdStrike's full-year guidance indicates that CCP will weigh on its growth this year. The midpoint of its adjusted earnings guidance for fiscal 2026 stands at $3.50 per share, lower than the $3.93 per share in earnings that it generated in the previous fiscal year. The company expects its revenue to increase by almost 21% in fiscal 2026 at the midpoint of guidance, which would be slower than the 29% increase it recorded last year. CrowdStrike management estimates that CCP will impact its revenue to the tune of $10 million to $15 million in each of the remaining quarters this year. However, the good part is that CrowdStrike's earnings growth should accelerate nicely beginning in fiscal 2027. That won't be surprising, considering that CrowdStrike sees its total addressable market increasing to $250 billion in the next three years from $116 billion last year, driven by new catalysts such as AI. The company is now offering multiple AI-powered cybersecurity tools to customers, such as protecting large language models (LLMs) in collaboration with Nvidia to agentic AI assistants that can speed up the response to cybersecurity incidents. The revenue generated from sales of AI tools within the cybersecurity space is expected to jump by more than 4x between 2024 and 2030, generating $134 billion in annual revenue at the end of the decade. As a result, it won't be surprising to see an improvement in the adoption of CrowdStrike's cybersecurity modules by its customers, which should drive an improvement in both sales and margins. The good thing to note here is that CrowdStrike's module adoption rates have improved despite last year's incident. The company said that 48% of its customers were using six or more of its modules, while 32% were using eight or more of its offerings at the end of the previous quarter. Both numbers were up by four percentage points as compared to the year-ago period. As such, CrowdStrike could indeed clock robust earnings growth going forward and live up to analysts' expectations thanks to the huge addressable opportunity it is sitting on and its focus on product development to capture opportunities presented by catalysts such as AI. There remains one big problem for investors who are looking to buy this stock now. CrowdStrike stock has shot up 61% since the incident on July 19 last year, which means that investors have been buying this cybersecurity stock despite the drop in its earnings. As a result, the stock is now trades at an expensive 141 times forward earnings. That's well above its five-year average forward earnings multiple of 106 and the tech-laden Nasdaq-100 index's forward earnings multiple of 28 (using the index as a proxy for tech stocks). So, investors who have missed CrowdStrike's rally in the past year would do well to stay away from the stock right now, considering its expensive valuation and the expected contraction in its bottom line in fiscal 2026. Of course, the company is expected to clock healthy growth from next year, but the stock seems to have gotten ahead of itself. That's why it would be a good idea to add CrowdStrike to your watchlists and wait for a pullback in its share price so that you can buy it at a relatively attractive valuation to take advantage of the healthy growth that the company is likely to deliver in the long run. Before you buy stock in CrowdStrike, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and CrowdStrike wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $689,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $906,556!* Now, it's worth noting Stock Advisor's total average return is 809% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike and Nvidia. The Motley Fool has a disclosure policy. This Cybersecurity Stock Is Beating the Market in 2025. Is It Still Worth Buying Hand Over Fist? was originally published by The Motley Fool
Yahoo
21-06-2025
- Business
- Yahoo
CrowdStrike Just Partnered Up With Nvidia. Should You Buy CRWD Stock Here?
CrowdStrike (CRWD) continues to ride the wave of soaring enterprise demand for artificial intelligence (AI)-native cybersecurity solutions, fueled by platform consolidation and the swift embrace of its Falcon Flex model. As businesses race to modernize security operations amid a rapidly evolving AI threat landscape, the company finds itself perfectly positioned. On June 11, CrowdStrike's shares surged 2% following the announcement that it would integrate its Falcon Cloud Security with Nvidia's (NVDA) universal LLM NIM microservices and NeMo Safety. The collaboration delivers comprehensive protection for AI and over 100,000 large language models. Dear Tesla Stock Fans, Mark Your Calendars for June 30 Nvidia Is Quickly Approaching a New Record High. Is It Too Late to Buy NVDA Stock? The 'Golden Era' for Tesla Starts June 22. Should You Buy TSLA Stock First? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! With large language models moving into production, the risk of AI-related threats such as data poisoning, tampering, and sensitive data leaks is escalating. CrowdStrike's Falcon platform pairs seamlessly with NVIDIA NIM, offering full lifecycle defense by monitoring runtime behavior and leveraging AI-driven detection and response. CRWD stock hit a new 52-week high on June 17 and is trading less than 2% beneath it as of this writing. Its Nvidia alliance could serve as the next catalyst for upward momentum. Based in Austin, Texas, CrowdStrike (CRWD) is a $120.9 billion cybersecurity leader, delivering cloud-native protection for endpoints, workloads, identities and data. In the past 52 weeks, CRWD stock has climbed 24.6%. On June 3, CrowdStrike reported its first-quarter earnings for fiscal 2026, delivering results that outpaced management's expectations. Revenues climbed steadily to $1.1 billion, marking a 20% year-over-year jump and aligning neatly with the Street's forecasts. This marked the third consecutive quarter where revenues surpassed the $1 billion threshold, a feat driven in large part by the Falcon Flex Subscription Model. As of the quarter's end, annual recurring revenue (ARR) stood at $4.44 billion, reflecting a 22% year-over-year rise. The engine behind this surge was Falcon Flex again, which added $774 million in total account value this quarter alone, swelling the cumulative deal value of Falcon Flex accounts to $3.2 billion. Non-GAAP net income landed at $184.7 million, while adjusted EPS stood at $0.73, a notable beat over the expected $0.66 loss per share despite a 7.6% year-over-year dip. Liquidity remained strong too, with cash and equivalents rising to $4.6 billion by April 30, up from $4.3 billion at the end of January. Looking ahead, CrowdStrike projects Q2 fiscal 2026 revenue in the range of $1.145 billion to $1.152 billion. Adjusted net income is expected to land between $209.1 million and $213.8 million, with EPS forecasted in the range of $0.82 to $0.84. For the full fiscal year 2026, total revenue is anticipated between $4.74 billion and $4.81 billion. Adjusted net income is projected to reach as high as $909.7 million, or $3.44 to $3.56 per share. Meanwhile, analysts paint a mixed short-term picture. For Q2 2026, they expect the loss per share to widen 179% year over year to $0.19. For the entire fiscal year 2026, the anticipated loss widens further by 232.7% year over year to $0.65 per share. However, the outlook for fiscal 2027 is notably more optimistic. Analysts expect a significant turnaround, projecting EPS to grow 123.1% year over year, reaching $0.15 and setting the stage for a potential comeback. CrowdStrike has managed to strike the right chord with Wall Street. Analysts give the stock a 'Moderate Buy' rating overall. Out of 46 analysts, 29 hold a 'Strong Buy,' three suggest a 'Moderate Buy,' 12 are sitting on a 'Hold,' and two remain bearish with a 'Strong Sell.' The Street-high target of $550 represents potential upside of 13% from the current price level. On the date of publication, Aanchal Sugandh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
