April wasn't an enjoyable month for investors. The stock market became a roller coaster, marked by stomach-churning volatility with prices plummeting one day and soaring the next.
It's said about the weather that if you give it a few minutes it will change. The same could be true about sentiment for CrowdStrike Holdings Inc. NASDAQ: CRWD.
The technology sector, which had been primarily responsible for powering the market's recent ascent until this year, was at the forefront of the recent downturn, weighed down by global economic uncertainty and a renewed wave of risk-off sentiment. However, within the broader tech landscape, one industry has stood out for its relative strength and resilience: cybersecurity stocks.
CrowdStrike Holdings (CRWD) closed at $423.08 in the latest trading session, marking a -0.42% move from the prior day.
Upgrading CRWD shares to STRONG BUY with a $508/share price target, driven by strong customer retention and growth in cloud and identity security. CrowdStrike experienced minimal customer attrition post-July 2024 incident; through its customer-first initiatives, including discounted services and professional services. Revenue should realize an uplift in 2H '26 following the exhaustion of the customer commitment program, normalizing subscription prices with the larger customer base.
Recently, Zacks.com users have been paying close attention to CrowdStrike (CRWD). This makes it worthwhile to examine what the stock has in store.
CrowdStrike reported $4.24 billion in ARR for FY2025, growing 23% YoY with 112% net retention and 97% gross retention. FCF reached $1.07 billion in FY2025, but GAAP margins turned negative due to $636 million in SBC. Gross margin declined from 78% to 75% (GAAP), driven by rising cloud infrastructure costs and post-incident remediation expenses.
It says a lot about CrowdStrike (CRWD 4.78%) that its shares have climbed 10% year to date at the time of writing, as an exception to the broader stock market sell-off and the 10% decline in the S&P 500 index.
CrowdStrike Holdings Inc. NASDAQ: CRWD is up about 25% in the last 12 months. And with cybersecurity continuing to be one of the hottest sectors for investors, there's reason to believe it may go higher.
In the past month, CrowdStrike Holdings Inc. (NASDAQ: CRWD) appointed a new chief technology officer.
CrowdStrike Holdings (CRWD) closed at $368.45 in the latest trading session, marking a +1.59% move from the prior day.
CRWD's overvaluation at a time when it is battling legal risks, slower upsells and a disappointing profit outlook makes the stock worth selling at present.