What's Going On With CrowdStrike Stock?

CrowdStrike Holdings Inc CRWD shares are trending Tuesday. Here’s a look at what’s going on.

What To Know: Despite trading lower over the last two days, CrowdStrike shares are up nearly 7% over the last week. The broader cybersecurity space got a lift after Fortinet reported better-than-expected quarterly results and issued strong guidance for the first quarter last week.

Cybersecurity stocks continued to rally in the wake of Fortinet’s earnings results as several analysts raised price targets on the stock and spoke favorably about the cybersecurity market.

CrowdStrike also announced a new strategic distribution partnership with Ignition Technology in the UK on Tuesday. The partnership will allow CrowdStrike to increase the availability of its AI-native Falcon platform to UK businesses.

“CrowdStrike puts partners at the centre of our mission of stopping breaches. As customers around the world demand access to the Falcon platform, we will continue investing our time and resources in strategic partners like Ignition Technology who deliver differentiated customer success and deep market expertise,” said Daniel Bernard, chief business officer at CrowdStrike.

Cantor Fitzgerald analyst Yi Fu Lee also reiterated CrowdStrike with an Overweight rating on Tuesday and maintained a price target of $360.

CRWD Stock Prediction 2024

CrowdStrike’s revenue growth in FY23 was 54.4%, reflecting the influence of various factors including the macroeconomic environment, demand for its products and services and its position relative to competitors. This growth is a critical indicator for investors assessing the company’s future prospects.

Some macro factors that could impact the company's performance in the next year include higher interest rates, progress on reeling in inflation and labor market strength. The Fed's benchmark rate is currently at 5.33%, while PPI recently came in at -0.1%, growing 2% from last year. The unemployment rate was most recently reported as 3.7%.

An investor should pay attention to economic conditions to decide whether they think the macro environment is positive or negative for CrowdStrike Holdings stock. For real time economic data and breaking market updates, check out Benzinga Pro. Try it for free.

How does this stack up against CrowdStrike Holdings's peers?

Investors may also want to analyze a stock in comparison to companies with similar products or in similar industries. CrowdStrike Holdings operates in the Information Technology sector. The stock has experienced average annual growth of 9.21% compared to the 0.55% average of its peer companies. This is below the broader sector movement of CrowdStrike Holdings.

CRWD Price Action: CrowdStrike shares were down 3.1% at $311.32 at the time of publication, according to Benzinga Pro.

Photo:  B_A  from Pixabay.