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.
CrowdStrike (CRWD -1.22%) is still feeling the consequences of the outages it was responsible for in 2024.
It hasn't been the best start to 2025 for many U.S. stock market indexes and top tech companies. The S&P 500 barely escaped a correction, the Dow Jones is down, and the Nasdaq Composite is officially in a correction after escaping its short-lived bear market.
Despite the market tumbling lower so far in 2025, many growth stocks still seem to have stretched valuations. Two that I wouldn't touch with a 10-foot pool at their current prices are cybersecurity specialist CrowdStrike (CRWD -3.25%) and data analytics software company Palantir Technologies (PLTR -5.61%).
CrowdStrike (CRWD) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.