Latest news with #CRWD
Entrepreneur
10 hours ago
- Business
- Entrepreneur
CrowdStrike Stock Dips on Guidance Miss: It May Rebound Fast
CrowdStrike stock fell over 6% after the company's short-term guidance failed to meet lofty expectations, but analysts remain bullish on the second half This story originally appeared on MarketBeat [content-module:CompanyOverview|NASDAQ:CRWD] CrowdStrike Holdings Inc. (NASDAQ: CRWD) is down more than 6% after delivering its first quarter earnings report after the market closed on June 3. The company beat on the bottom line. However, revenue came in as expected. Furthermore, the company's guidance was not as bullish as investors hoped. The takeaway is simple. As was the case with many technology stocks this earnings season, the sharp move prior to earnings was the overreaction. This is a move back to equilibrium. It's also an opportunity for investors to get involved with CRWD stock at a better price. But if investors are looking for that better price, they shouldn't wait too long, because this dip isn't likely to get much deeper. CrowdStrike Didn't Stick the Landing If CrowdStrike's earnings report was a gymnastics routine, people could say it was flawless, but the company didn't stick the landing. That landing was in the guidance for full-year revenue. It came in as expected. However, with a stock that was trading at a premium before the report, analysts and investors wanted to see more. But it's important to understand what the company delivered. Topline revenue of $1.10 billion was in line with expectations for $1.11 billion. Revenue was 20% higher year-over-year (YOY). Annual recurring revenue was up 22% YOY. Earnings per share (EPS) of 73 cents came in ahead of forecasts of 66 cents and was 265% higher YOY. The issue became the guidance. For the current quarter, CrowdStrike guided to revenue between $1.145 billion and $1.152 billion. Analysts were estimating $1.23 billion. The company's earnings per share estimate of between 82 cents to 84 cents per share was also below estimates of 92 cents. The Long-Term Outlook Is What Matters On May 23, DZ Bank downgraded CRWD stock from a Strong Buy to a Strong Sell with a price target of $370. Options traders were also bearish on CrowdStrike heading into earnings. In both cases, the sentiment was around CRWD stock being priced for perfection. [content-module:Forecast|NASDAQ:CRWD] The reason for that sentiment is that CrowdStrike is expecting subscription revenue in 2025 to be impacted by the goodwill offerings it made to customers in response to its well-publicized outage in 2024. These offerings allowed customers to sample services within CrowdStrike's Falcon platform at no charge. However, investors need to be careful about putting too much emphasis on the short-term price movement. That's because the impact of those goodwill offerings is projected to lessen in the second half of the year. On the earnings call, management confirmed the company already has booked $3.2 billion in revenue from its FalconFlex subscription model. The company expects business to accelerate in the second half of the year. To support that expectation, CrowdStrike maintained its full-year revenue outlook from $4.743 billion to $4.805 billion. The layoffs enacted earlier this year are also expected to benefit the company's bottom line. That also explains why, since the report, at least a dozen analysts are weighing in with many increasing their price targets for the stock. Dan Ives of Wedbush is among the most bullish, with a price target of $525. Don't Blink, or You'll Miss the Dip in CRWD Stock CRWD stock had rallied hard in the last few trading days before the earnings report. That left the stock priced for perfection, and investors decided they didn't get perfect results. To be fair, the stock isn't at oversold levels—it hasn't been since it hit around $312 in March. Nothing in the report suggested a massive sell-off that would collapse the stock price. Therefore, this may be your opportunity if you want to buy the dip. Early trading on June 4 suggests that many investors already have the same idea. By midday, CRWD stock had already covered about half of the dip in post-earnings. Investors hoping to get in at a price of around $325, which would bring its valuation down to about 16x, will be disappointed. However, it's time to focus on the potential for a breakout. As analysts raise their price targets, it's not hard to imagine the stock climbing another 15% or more from its current levels. [content-module:TradingView|NASDAQ:CRWD] Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now... See The Five Stocks Here
Yahoo
13 hours ago
- Business
- Yahoo
Is CrowdStrike (CRWD) a Buy as Wall Street Analysts Look Optimistic?
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about CrowdStrike Holdings (CRWD). CrowdStrike currently has an average brokerage recommendation (ABR) of 1.66, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 47 brokerage firms. An ABR of 1.66 approximates between Strong Buy and Buy. Of the 47 recommendations that derive the current ABR, 32 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 68.1% and 6.4% of all recommendations. Check price target & stock forecast for CrowdStrike here>>>While the ABR calls for buying CrowdStrike, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential. Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements. Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision. In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures. The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them. In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research. Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns. There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices. Looking at the earnings estimate revisions for CrowdStrike, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $3.44. Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for CrowdStrike. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for CrowdStrike. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CrowdStrike (CRWD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
Why CrowdStrike (CRWD) Stock Is Falling Today
Shares of cybersecurity company CrowdStrike (NASDAQ:CRWD) fell 5.5% in the afternoon session after the company reported mixed first quarter 2025 (Q1 FY-26) results: its revenue guidance for next quarter slightly missed and its full-year revenue guidance was just in line with Wall Street's estimates. On the other hand, CrowdStrike beat convincingly on operating profit. Looking ahead, guidance was solid. The company's EPS guidance for next quarter topped analysts' expectations, and its full-year EPS guidance slightly exceeded Wall Street's estimates as well. Overall, this was a mixed quarter and not enough for the high expectations around the stock (as evidenced by the 52-week high right before reporting and a 40+% stock price appreciation year-to-date before the print). The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy CrowdStrike? Access our full analysis report here, it's free. CrowdStrike's shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 11 months ago when the stock dropped 14.7% following a global technology outage. The outage was caused by a faulty update deployed by CrowdStrike to computers running the Microsoft Windows operating system. CrowdStrike clarified that the issue wasn't caused by "a security incident or cyberattack." CEO George Kurtz noted on the social media platform X (formerly called Twitter) that "the issue has been identified, isolated, and a fix has been deployed." However, the issue had far-reaching consequences, affecting systems in industries delivering critical services, including hospitals, banks, and airports. CRWD stock's decline suggested markets might be struggling to understand the long-term implications of the issue, especially as it relates to CrowdStrike maintaining its dominance in the highly competitive cybersecurity space, which often permits little to no room for mistakes. Wedbush analyst Dan Ives provided insights on how this might play out, adding, "It could create opportunity for some competitive displacements, but this will take time to determine the path of CIOs and companies looking ahead and related legal actions related to this outage." CrowdStrike is up 33% since the beginning of the year, and at $461.84 per share, it is trading close to its 52-week high of $488.76 from June 2025. Investors who bought $1,000 worth of CrowdStrike's shares 5 years ago would now be looking at an investment worth $4,812. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
Miami Herald
17 hours ago
- Business
- Miami Herald
CrowdStrike stock tumbles on disappointing forecast
Nothing in computer-related work is more frustrating than getting hacked or your workflow being wrecked by an update. "My engineers do not have this problem, and now I look like a stupid sales person" was the best nontechnical person's comment I've ever heard while I was working in IT. An update broke her workflow, and she shouldn't need to be an engineer for updates to work. If you are running a company and an update for a software you rely on to keep your data safe ends up making your employee computers unbootable, what are you going to do once the issue is resolved? You might start looking elsewhere. After all, changing the cybersecurity software platform you are using is much easier than switching to a different operating system. In July 2024, CrowdStrike (CRWD) released an update that caused hundreds of millions of computers running on Microsoft (MSFT) Windows to be stuck on a recovery page with the so-called Blue Screen of Death. The company implemented a commitment plan to reassure its customers. The plan cost about $60 million. On June 3 CrowdStrike reported its earnings results for Q1 of fiscal year 2026. here are the highlights: Total revenue was $1.1 billion, a 20% increase from $921 million in the first quarter of fiscal 2025. GAAP net loss attributable to CrowdStrike was $110.2 million, compared with GAAP net income of $42.8 million a year net loss per share was 44 cents against GAAP net income of 17 cents a year earlier. Net cash generated from operations was a record $384.1 million, compared qith $383.2 million, a year cash flow was $279.4 million, compared with $322.5 million in Q1 of fiscal and equivalents grew to a record $4.61 billion as of April 30. Related: Palantir's stock price surges on AI news, gamma squeeze The company ended its customer commitment packages program in the fiscal fourth quarter, but it still reduced revenue-growth opportunities. And its forecast for second-quarter revenue came in below analysts' estimates, writes Reuters. At last check CRWD shares were trading off 5.4% above $462, More Tech Stocks: Palantir gets great news from the PentagonAnalyst has blunt words on Trump's iPhone tariff plansOpenAI teams up with legendary Apple exec CrowdStrike reported that it surpassed $1 billion in total revenue, through its partnership with GuidePoint Security. Demand for the Falcon platform is surging, the company said. Related: Popular cloud storage service might be oversharing your data "GuidePoint has been a longstanding and trusted partner in our ecosystem, consistently delivering the expertise and services customers need to unlock the full potential of the Falcon platform," said Daniel Bernard, chief business officer at CrowdStrike. "Their focus on Falcon Next-Gen security information and even management and recognition of the transformative value of Falcon Flex have enabled customers to streamline security operations, consolidate costs and stay ahead of evolving threats." Related: Nvidia, Dell announce major project to reshape AI The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
18 hours ago
- Business
- Yahoo
CrowdStrike Beats on Q1 Earnings, Stock Down on Revenue Miss
CrowdStrike Holdings, Inc. CRWD reported non-GAAP earnings per share of 73 cents for the first quarter of fiscal 2026, which surpassed the Zacks Consensus Estimate by 10.61% and came ahead of management's guidance of 64-66 cents. However, the bottom line declined 7.6% on a year-over-year earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 13.18%.Despite reporting better-than-expected first-quarter bottom-line results, shares of CrowdStrike plunged 6.5% during Tuesday's extended trading session as revenues fell short of the consensus mark. The company's first-quarter revenues of $1.103 billion came slightly lower than the Zacks Consensus Estimate of $1.105 the top line increased 20% year over year and came within management's guidance of $1.1006-$1.1064 billion. The strong adoption of the Falcon platform and better sales execution mainly aided top-line growth in the fiscal first quarter. CrowdStrike price-consensus-eps-surprise-chart | CrowdStrike Quote Subscription revenues (95.2% of the total revenues) jumped 20.5% year over year to $1.051 billion. Professional services revenues (4.8% of the total revenues) increased 7.8% year over year to $52.67 of April 30, 2025, annual recurring revenues (ARR) were $4.4 billion, up 22% year over year. The company added $193.8 million to its net new ARR in the reported subscription customers, who adopted six or more cloud modules, represented 48% of the total subscription customers; those with seven or more cloud modules accounted for 32% and those with eight or more cloud modules represented 22% as of April 30, 2025. CrowdStrike's non-GAAP gross profit increased 18.5% to $857 million in the fiscal first quarter from $723.2 million in the year-ago quarter. The non-GAAP gross margin declined 100 basis points (bps) to 78%.The non-GAAP subscription gross profit soared 19.6% year over year to $840.8 million, while the gross margin fell 100 bps to 80% year over year. The non-GAAP professional gross profit declined 19.7% to $16.37 million, while the gross margin fell 1,100 bps to 31% on a year-over-year total non-GAAP operating expenses increased 35.6% to $656 million from $509.9 million reported in the year-ago quarter. As a percentage of revenues, non-GAAP operating expenses increased to 56% from 55.4% in the year-ago sales and marketing (S&M) expenses jumped 25.5% year over year to $368.5 million. Non-GAAP research and development (R&D) expenses climbed 34.7% year over year to $218.22 million. Non-GAAP general and administrative (G&A) expenses increased 27.8% year over year to $69.34 million. As a percentage of revenues, S&M expenses expanded 100 bps, while R&D expanded 200 bps and G&A expenses remained non-GAAP operating income declined 5.7% to $201.12 million. The non-GAAP operating margin for the quarter contracted 500 bps year over year to 18%. As of Jan. 31, 2025, cash and cash equivalents were $4.61 billion. CrowdStrike had a long-term debt of $744.36 the fiscal first quarter, CRWD generated operating and free cash flows of $384.1 million and $279.4 million, respectively. CrowdStrike initiated guidance for the fiscal second quarter. For the fiscal second quarter, CRWD anticipates revenues between $1.1447 billion and $1.1516 billion. The non-GAAP operating income is expected in the band of $226.9-$233.1 million. Non-GAAP net income is forecasted in the range of $209.1-$213.8 million. The company expects non-GAAP earnings per share in the band of 82-84 cents. The consensus mark for fiscal first-quarter revenues and non-GAAP earnings is pegged at $1.16 billion and 80 cents per share, fiscal 2026, CRWD expects revenues between $4.7435 billion and $4.8055 billion. The non-GAAP operating income for fiscal 2025 is projected in the band of $970.8-$1010.8 million. The company expects non-GAAP net income in the range of $878.7-$909.7 million. Non-GAAP earnings are anticipated in the band of $3.44-$3.56. The consensus mark for fiscal 2026 revenues and non-GAAP earnings is pegged at $4.78 billion and $3.44 per share, respectively. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Currently, CRWD carries a Zacks Rank #3 (Hold).Paylocity Holding PCTY, StoneCo STNE and Trivago TRVG are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology STNE and TRVG sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today's Zacks #1 Rank stocks shares have declined 4.3% year to date. The Zacks Consensus Estimate for PCTY's full-year 2025 earnings is pegged at $7.01 per share, up by 5.4% over the past 30 days, indicating an increase of 6.7% from the year-ago quarter's reported shares have surged 77.7% year to date. The Zacks Consensus Estimate for STNE's full-year 2025 earnings is pegged at $1.43 per share, up by 3.62% over the past 30 days, indicating an increase of 5.93% from the year-ago quarter's reported shares have surged 91.8% year to date. The Zacks Consensus Estimate for TRVG's full-year 2025 earnings per share is pegged at 10 cents, unchanged over the past 30 days, indicating a rise of 11.11% from the year-ago quarter's reported figure. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Paylocity Holding Corporation (PCTY) : Free Stock Analysis Report Trivago N.V. ADS (TRVG) : Free Stock Analysis Report StoneCo Ltd. (STNE) : Free Stock Analysis Report CrowdStrike (CRWD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
