Latest news with #CrowdStrike
CNBC
35 minutes ago
- Business
- CNBC
Morgan Stanley says 'take a breather' on CrowdStrike — why Jim Cramer disagrees
Jim Cramer on Monday brushed off Morgan Stanley's downgrade of CrowdStrike , viewing the cybersecurity giant's recent dip as a potential buying opportunity. "Morgan Stanley may downgrade this but I want to get in on the downgrade and get in on the discount," Cramer said Monday during the Investing Club's Morning Meeting. Shares of CrowdStrike dipped nearly 2% in the premarket Monday but stabilized by midday, trading at roughly $477 apiece. Morgan Stanley took CrowdStrike to equal weight from buy-equivalent overweight, while slightly increasing its price target on the stock to $495 from $490. After a 50% stock rise since April, analysts called it "time to take a breather," citing its high valuation that reflects lofty expectations. CrowdStrike's stock trades at 21 times its expected 2026 sales, well above the average of 12 times for large software companies. That suggests investors expect near-perfect performance. While the analysts still see CrowdStrike as a long-term leader in cybersecurity with strong artificial intelligence tailwinds, they said "the near-term opportunity appears fully priced in," referring to the second half reacceleration that CEO George Kurtz has guided over the past couple quarters. Concerns about CrowdStrike's valuation have lately been a concern on Wall Street. Yet investors are willing to pay a premium for the stock for its fast growth and potential. Morgan Stanley's downgrade comes just before the one-year anniversary of CrowdStrike's infamous July 19 IT glitch, when a routine software update led to one of the largest IT outages in history, causing millions of Windows computers to crash around the globe. When we initiated CrowdStrike in October 2024, we viewed it as a turnaround story following the botched software update. The risk proved to be manageable after CEO Kurtz fought to reassure clients and introduced customer package deals to retain impacted clients and rebuild trust. As a result, the company did not lose a lot of business. Jim remains confident that as those packages roll over, the customers will pay full price. That suggests "the second half is going to be much stronger than the first half," Jim said Monday on "Squawk on the Street." Cramer is scheduled to interview George Kurtz on "Mad Money" Monday evening and is expected to get the latest on how business is faring one year later. One area of concern is the budget cut back for cybersecurity by the federal government. Cyber stocks sold off last Thursday on a report that President Donald Trump's 2026 budget cuts cyber spending by over $1 billion from 2024 levels. CrowdStrike dropped 5%. Shares of fellow cybersecurity leader and Club holding Palo Alto Networks fell 6.8%, while Zscaler dropped 6.4%. We don't agree with this decision, given the rise in geopolitical tensions and nation states trying to hack one another. But we're comforted by the fact the CrowdStrike has reiterated time and time again that with bad actors working overtime companies and governments need, and will pay for, CrowdStrike's cyber solutions. (Jim Cramer's Charitable Trust is long CRWD, PANW. 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
3 hours ago
- Business
- Yahoo
CrowdStrike Caution Grows After Rating Cut
Crowdstrike (NASDAQ:CRWD) slides almost 2% premarket after Morgan Stanley downgrades to equal-weight on full valuation following a near 50% rally since April lows. Warning! GuruFocus has detected 5 Warning Sign with CRWD. Morgan Stanley analysts led by Keith Weiss said they are stepping to the sidelines given full valuation after the nearly 50% bounce since April and rising growth expectations. The firm raised its price target to full-form $495 from $490 while acknowledging CrowdStrike remains a long-term market leader in cybersecurity with direct exposure to AI driven consolidation. The second half acceleration we expect now looks well priced in the shares, the analysts said. The move follows a broader pullback in growth names this week as investors book profits in tech and other high growth sectors after extended rallies amid lingering Fed policy concerns. Weiss's team added that the second quarter print is unlikely to shift the long-term thesis as investor attention remains on the second half of the year. They highlighted limited visibility into Customer Commitment Package renewals and Falcon Flex contract impacts on revenue recognition and margins and said a more balanced risk reward profile calls for waiting on better entry points. Investors should care because the stock's rally has already priced in the acceleration analysts expect, leaving limited near-term upside and skewing risk reward toward cautious positioning. Investors will eye CrowdStrike's second quarter earnings in late July for clearer insight into growth drivers and margin trends. This article first appeared on GuruFocus. 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
Globe and Mail
4 hours ago
- Business
- Globe and Mail
CrowdStrike vs. Cloudflare: Which Cybersecurity Stock Wins?
CrowdStrike Holdings Inc. (NASDAQ: CRWD) is one of the best-performing technology stocks of 2025, with shares up 50% year-to-date. That rally reflects renewed investor confidence in its Falcon platform, which is a true comeback story following the high-profile service outage in 2024. The total addressable market (TAM) for cybersecurity solutions is expected to exceed $500 billion by 2030. This means many companies are looking for their share of the pie. Cloudflare Inc. (NYSE: NET) is one of those names. In fact, NET stock is up 80% this year, a full 30 percentage points ahead of CrowdStrike. The opportunity in this sector can certainly support investors having more than one cybersecurity stock in their portfolio. But if an investor could only choose one, which of these names might be more attractive? These two cloud-native cybersecurity leaders offer solutions that often appear to overlap. However, their business models, core technologies, and growth trajectories are distinctly different. CrowdStrike's Falcon Platform Changed the Industry The core of CrowdStrike's business is its Falcon platform. This allows customers to take an à la carte approach to their cybersecurity needs, using as much or as little of the Falcon platform as they need. Several legacy security vendors, such as Palo Alto Networks Inc. (NASDAQ: PANW), began pivoting to platform-based models in the mid-2010s. However, CrowdStrike distinguished itself as an early pioneer of a cloud-native security platform. By launching Falcon as an integrated endpoint and threat intelligence solution from day one, CrowdStrike set the standard for how a modern, scalable cybersecurity platform could replace fragmented point products This platformization model was a key lever that CrowdStrike pulled as it worked to regain customer trust after the 2024 outage. It offered customers the opportunity to use some of Falcon's platform services at no cost for a limited time. The company now expects its goodwill measure to turn into actual revenue in the coming quarters. Cloudflare Is Taking Aim at the Zero Trust Space Cloudflare's Cloudflare One suite is a cloud-native platform that combines a range of services delivered from the same infrastructure that powers its CDN and DDoS protection. While Cloudflare still derives most of its revenue from networking and CDN services, the company is rapidly emerging as a force in Zero Trust security. Its Cloudflare One suite delivers identity, access, and application protection at the edge without relying on traditional firewalls. With one of the largest global edge networks, Cloudflare is well-positioned to scale Zero Trust access with low latency and high security. Zero Trust remains a relatively small part of Cloudflare's overall revenue, but its freemium, self-serve model gives it a massive top-of-funnel that it can leverage to convert more paid Zero Trust and enterprise security customers over time. How CRWD and NET Stocks Are Similar and Different As noted in the introduction, CrowdStrike and Cloudflare are both having strong years. However, both are overvalued when you compare their respective stock prices to analysts' consensus price targets. That suggests both stocks could be ready for significant pullbacks. So, which stock makes more sense to buy when that dip occurs? That may depend on your investment objectives and risk tolerance. CrowdStrike is a profitable, large-cap cybersecurity leader with a proven platform and strong customer retention. CRWD stock is better suited for investors seeking quality growth with a slightly lower risk profile. Cloudflare is still in its high-growth, high-spending phase. It lacks profitability but boasts higher year-to-date returns and a strong vision for Zero Trust dominance. It's better aligned with investors who can stomach volatility in pursuit of long-term upside. The cybersecurity sector is expanding rapidly, and both CrowdStrike and Cloudflare are well-positioned to benefit. As always, do your own due diligence and consider whether one or both of these cybersecurity leaders deserve a place in your portfolio. Where Should You Invest $1,000 Right Now? 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.
Yahoo
4 hours ago
- Business
- Yahoo
Unpacking Q1 Earnings: CrowdStrike (NASDAQ:CRWD) In The Context Of Other Cybersecurity Stocks
Quarterly earnings results are a good time to check in on a company's progress, especially compared to its peers in the same sector. Today we are looking at CrowdStrike (NASDAQ:CRWD) and the best and worst performers in the cybersecurity industry. Cybersecurity continues to be one of the fastest-growing segments within software for good reason. Almost every company is slowly finding itself becoming a technology company and facing rising cybersecurity risks. Businesses are accelerating adoption of cloud-based software, moving data and applications into the cloud to save costs while improving performance. This migration has opened them to a multitude of new threats, like employees accessing data via their smartphone while on an open network, or logging into a web-based interface from a laptop in a new location. The 9 cybersecurity stocks we track reported a satisfactory Q1. As a group, revenues beat analysts' consensus estimates by 1.2% while next quarter's revenue guidance was in line. While some cybersecurity stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.1% since the latest earnings results. Founded by George Kurtz, the former CTO of the antivirus company McAfee, CrowdStrike (NASDAQ:CRWD) provides cybersecurity software that protects companies from breaches and helps them detect and respond to cyber attacks. CrowdStrike reported revenues of $1.10 billion, up 19.8% year on year. This print was in line with analysts' expectations, and overall, it was a satisfactory quarter for the company with a solid beat of analysts' EBITDA estimates but revenue guidance for next quarter meeting analysts' expectations. 'We started the fiscal year with record Q1 large deal and MSSP momentum alongside sustained 97% gross retention and consistently strong net retention as the market consolidates on Falcon as its cybersecurity platform of choice for the agentic AI era,' said George Kurtz, Founder and CEO. CrowdStrike delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 2.3% since reporting and currently trades at $477.35. Is now the time to buy CrowdStrike? Access our full analysis of the earnings results here, it's free. After successfully selling all four of his previous cybersecurity companies, Jay Chaudhry's fifth venture, Zscaler (NASDAQ:ZS) offers software-as-a-service that helps companies securely connect to applications and networks in the cloud. Zscaler reported revenues of $678 million, up 22.6% year on year, outperforming analysts' expectations by 1.6%. The business had a very strong quarter with full-year EPS guidance exceeding analysts' expectations and an impressive beat of analysts' annual recurring revenue estimates. Zscaler delivered the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 15.5% since reporting. It currently trades at $289.80. Is now the time to buy Zscaler? Access our full analysis of the earnings results here, it's free. With roots in the Israeli cyber intelligence community, SentinelOne (NYSE:S) provides software to help organizations efficiently detect, prevent, and investigate cyber attacks. SentinelOne reported revenues of $229 million, up 22.9% year on year, in line with analysts' expectations. It was a mixed quarter as it posted an impressive beat of analysts' EBITDA estimates but a miss of analysts' billings estimates. As expected, the stock is down 12.2% since the results and currently trades at $17.27. Read our full analysis of SentinelOne's results here. Founded in 2005 by cybersecurity engineer Nir Zuk, Palo Alto Networks (NASDAQ:PANW) makes hardware and software cybersecurity products that protect companies from cyberattacks, breaches, and malware threats. Palo Alto Networks reported revenues of $2.29 billion, up 15.3% year on year. This print surpassed analysts' expectations by 0.5%. More broadly, it was a satisfactory quarter as it also logged a solid beat of analysts' EBITDA estimates but full-year revenue guidance meeting analysts' expectations. The stock is down 3.6% since reporting and currently trades at $187.66. Read our full, actionable report on Palo Alto Networks here, it's free. Founded during the aftermath of the financial crisis in 2009, Okta (NASDAQ:OKTA) is a cloud-based software-as-a-service platform that helps companies manage identity for their employees and customers. Okta reported revenues of $688 million, up 11.5% year on year. This result topped analysts' expectations by 1.2%. Aside from that, it was a satisfactory quarter as it also recorded EPS guidance for next quarter exceeding analysts' expectations but a miss of analysts' billings estimates. The stock is down 27.1% since reporting and currently trades at $91.60. Read our full, actionable report on Okta here, it's free. Thanks to the Fed's rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn't send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump's November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. 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Yahoo
2 days ago
- Business
- Yahoo
CrowdStrike Holdings, Inc. (CRWD): I Sold Some For My Trust, Says Jim Cramer
We recently published . CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is one of the stocks Jim Cramer recently discussed. CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is one of the largest cybersecurity companies in the world. Its shares have gained 46% year-to-date and have successfully recovered their 32% in losses between mid-February and March. However, while the stock is up since its March bottom, it fell by close to 6% in June after CrowdStrike Holdings, Inc. (NASDAQ:CRWD)'s midpoint quarterly revenue guidance of $1.145 billion fell short of analyst estimates of $1.16 billion. In his previous remarks about the company, Cramer has continued to remain bullish about the cybersecurity industry due to several factors, such as state-backed cyber criminals. Here are his recent thoughts about CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in the aftermath of a Piper Sandler downgrade: 'I myself have sold some Crowdstrike for my charitable trust cause I said, alright, this is one of the greatest runs we've ever had. And I'm being, you know I don't like the fact that I'm being greedy. And I don't mean, George Kurtz watched the show, and I'm sorry George Kurtz, I just don't want to be part of that.' Security personnel at their consoles, monitoring a global network of threats in real-time. Previously, Cramer commented on CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in the context of strength in the cybersecurity market: 'First positive area is cybersecurity. The dangers have never been greater, and the group's winners are bountiful because there's just so much business, because there are so many cyber criminals, and some of them are state-sponsored. We're doing something for the club that we've never done. We actually own two of them for the trust, two… We own CrowdStrike and Palo Alto Networks. It's rare for us to have two stocks in the same relatively small sector, but the companies are doing so well that I kind of wish we even owned the third… Still, Palo Alto and CrowdStrike are winning huge deals. And while their stocks have been volatile at reporting time, their long-term direction is clear: It's higher.' While we acknowledge the potential of CRWD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. 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
