Latest news with #Carahsoft-IRS
CNBC
2 days ago
- Business
- CNBC
Meta's energy deal boosts the data center trade, sending our newest stock to another record high
Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Tuesday's key moments. 1. Markets are higher Tuesday following Monday's solid intraday turnaround. "This is another one of those days where you look at the futures beforehand, and the futures say it's going to be a really ugly day," Jim Cramer said. "And then it turns out to not only be not that ugly of a day, but there's opportunity everywhere." Amid the latest trade headlines, the Trump administration wants countries to put in their best offers by Wednesday, Reuters reported . "Hopefully, we start to see more trade deals, " said Jeff Marks, director of portfolio analysis for the Club. 2. Club name Meta signed a 20-year agreement with Constellation Energy to buy nuclear power. Starting June 2027, Meta will buy about 1.1 gigawatts of energy from Constellation's Clinton Clean Energy Center in Illinois. If not for Meta's commitment, the plant was at risk of closing upon expiration of its zero-emissions credit. The power agreement points to the growing power needs of AI data centers, hence why portfolio names GE Vernova and Eaton — which both benefit from that trend — are also higher Tuesday on the news. GE Vernova has had a "parabolic" move since we started buying it last month, Jim noted. While that is usually a sign for us to trim, Jim said our overall GE Vernova position size is still too small to want to do that. GE Vernova is on track to close at another all-time high Tuesday. 3. CrowdStrike is set to report earnings Tuesday evening, as the company approaches the one-year anniversary of the major IT outage sparked by its faulty software update. Jeff said we'll be looking for more positive signs that the company has moved past the ordeal. As CrowdStrike discontinues incentives stemming from the outage, investors want to see confidence that net new annual recurring revenue will accelerate in the second half of 2025. The stock continues to rise despite noise of work force reduction and the investigation into the Carahsoft-IRS deal. Shares are up about 41% year to date. 4 . Stocks covered in Tuesday's rapid fire at the end of the video were: Dollar General , Pinterest, Signet , Alphabet , and Salesforce (Jim Cramer's Charitable Trust is long APPL, CRM, CRWD, ETN, GEV, META . See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Yahoo
09-05-2025
- Business
- Yahoo
CrowdStrike Probed Over $32M IRS Deal
Crowdstrike (NASDAQ:CRWD) dips after DOJ and SEC probe executives' roles in a $32 million Carahsoft-IRS deal. U.S. prosecutors and regulators are scrutinizing a 2023 agreement under which CrowdStrike sold cybersecurity services to the IRS via Carahsoft, despite no products ever being purchased. Warning! GuruFocus has detected 5 Warning Sign with CRWD. Shares slid about 3% on Friday after Bloomberg reported that the Department of Justice and Securities and Exchange Commission are investigating what senior executives knew and whether the transaction was properly accounted for. The 2023 dealstructured as four $8 million paymentscould have swung CrowdStrike's revenue and ARR metrics, and the company later excluded roughly $26 million from its annual recurring revenue, citing distributor-transferability issues. Investigators have interviewed former staff about potential pre-booking or channel-stuffing practices and are reviewing responses to Sarbanes-Oxley compliance questionnaires. They've expanded their review to other federal contracts, including a $1 million-plus IRS order and multi-million-dollar deals with the Departments of Health and Human Services and Energy. CrowdStrike's spokesperson, Kevin Benacci, reiterated that we stand by the accounting of the transaction, while Carahsoft says it continues to support the deal. Regulators have also obtained internal records showing at least one employee flagged concerns about the transaction's completeness. Why It Matters: The probes highlight legal, financial and reputational risks for cybersecurity firms when large distributor transactions skirt delivery and revenue recognition norms. Investors will look to CrowdStrike's Q2 earnings call for updates on legal reserves and any impact on guidance. As of May 9, 2025, CrowdStrike Holdings has a GF Value of $363.59, with the stock currently trading above fair value, signaling it is modestly overvalued. The price trend has outpaced GF Value estimates, suggesting investor enthusiasm may be running ahead of fundamentals. This article first appeared on GuruFocus.
