The company's drop in November was likely the result of a Morgan Stanley analyst downgrading CrowdStrike's stock, and it's clear that some investors still believe the stock's valuation is too high.
Is CrowdStrike a good investment?
Solid Rank & Growth Score: CrowdStrike currently carries a Zacks Rank #2 (Buy) and has a Growth Score of A. Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or #2, offer the best investment opportunities for investors.Mar 11, 2022
Is CrowdStrike losing money?
CrowdStrike reported a wider GAAP net loss of $235 million, compared to $93 million the previous year. That's a 153% increase in loss. GAAP loss from operations was $143 million, also widened compared to $93 million previously.Mar 21, 2022
Why are CrowdStrike Shares down?
CrowdStrike traded sharply lower Monday after shares of the cybersecurity software company were initiated at Underweight by Morgan Stanley with a price target of $247. CrowdStrike (ticker: CRWD) fell 12.7% to $248.13. The stock has gained 17% so far in 2021 and more than 88% over the past 52 weeks.Nov 15, 2021
What are analyst saying about CrowdStrike stock?
Stock Price Forecast The 28 analysts offering 12-month price forecasts for CrowdStrike Holdings Inc have a median target of 275.00, with a high estimate of 340.00 and a low estimate of 212.00. The median estimate represents a +14.73% increase from the last price of 239.70.
Why is CrowdStrike not profitable?
CrowdStrike like many SaaS companies remains unprofitable with valuations beyond justifiable levels. Business growth and its profitability are the main risks from the investment perspective. The low complexity, effectiveness, and scalability of CrowdStrike's solutions have gained the company the trust of major firms.Feb 7, 2022
Is CrowdStrike overvalued?
On a relative valuation, CRWD stock is overvalued based on its PB Ratio (49.3x) compared to the U.S. Software industry average (5.7x). The Price/Sales ratio of 36.23 for December 28, 2021, is considered too high considering that the firm is losing money.Jan 2, 2022
Is CrowdStrike a buy sell or hold?
CrowdStrike has received a consensus rating of Buy. The company's average rating score is 2.96, and is based on 27 buy ratings, 1 hold rating, and no sell ratings.
Why is CrowdStrike stock up?
Analysts cited unprecedented demand for cybersecurity increasing with the war in Ukraine as a reason for the upgrade. The stock is down 26% from its all-time closing high in November.Apr 12, 2022
Is CRWD a buy Zacks?
How good is it? See rankings and related performance below. The VGM Score are a complementary set of indicators to use alongside the Zacks Rank....Momentum Scorecard. More Info.Zacks RankDefinitionAnnualized Return1Strong Buy24.97%2Buy18.45%3Hold10.03%4Sell5.70%2 more rows
What is the target price for Microsoft?
Stock Price TargetsHigh$410.00Median$370.00Low$306.55Average$368.09Current Price$285.30
What is the target price for AMD?
Stock Price Target AMDHigh$200.00Median$150.00Low$100.00Average$147.92Current Price$94.02
What happened
Another day, another bit of good news from Wall Street for CrowdStrike Holdings (NASDAQ: CRWD) investors -- so why aren't they happy?
So what
Does that make sense? I mean, yesterday, Canaccord called CrowdStrike stock "a long-term secular winner" (reports TheFly.com ), one with a "first-mover cloud advantage" that's helping it to capture a greater and greater share of cybersecurity budgets.
Now what
Here's what I think is happening, and why investors aren't responding with greater enthusiasm to analysts' favorable words about CrowdStrike: On the one hand, yes, business is booming. We saw that last quarter, when CrowdStrike's sales surged 86% year over year.
What happened
Shares of CrowdStrike Holdings (NASDAQ: CRWD) stock are tumbling, down 12% as of 12:50 p.m. EDT despite the cloud-based security software maker reporting estimate-beating results in its Q2 earnings report last night -- and better-than-expected guidance as well.
So what
Sales nearly doubled year over year and were up 94%. Some 90% of those sales came from recurring revenue subscriptions, a segment that grew even faster than overall sales: up 98% year over year. CEO George Kurtz hailed the securing of "a record number of net new subscription customers in the quarter" as a key accomplishment.
Now what
The good news is that these losses were a whole lot better than the $0.75 per share lost in the year-ago quarter, and CrowdStrike predicts continued improvement as time goes by.
What is CrowdStrike Holdings?
CrowdStrike Holdings is a American stock, trading under the symbol CRWD-Q on the NASDAQ (CRWD). It is usually referred to as NASDAQ:CRWD or CRWD-Q.
What does a high score mean on CrowdStrike?
Stockchase rating for CrowdStrike Holdings is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.
The Investment Case
Hard to believe, yet it has been March 2020 when I last checked out on CrowdStrike after the company went public in the summer before. I concluded that I liked the growth and leadership position, and while the valuation looked fair, I saw opportunities left and right with markets tanking as a result of the pandemic.
Incredible Momentum
After shares traded at $50 in March, they have seen huge momentum throughout the year and actually hit a high of $250 in recent weeks, before selling off to $190 per share. Despite the pandemic, the first quarter results (for the quarter ending in April) rose 89% as the midpoint of the full-year sales guidance was hiked to $766 million.
A Final Word
Truth be said is that CrowdStrike is a great company with great momentum over the past year, as sales multiples have expanded a huge deal to essentially 40 times sales.
