Jim Cramer Joins Multiple Analysts Calling The Bottom In CrowdStrike Stock

CrowdStrike Holdings Inc CRWD shares are bouncing back Monday after facing heavy selling in recent trading sessions on the heels of a global IT outage. Jim Cramer believes the stock has found a bottom and is headed higher from here.

What To Know: CrowdStrike shares are down more than 32% over the past month after a failed CrowdStrike update led to a major outage that impacted businesses across the world.

Monday on CNBC’s “Squawk On The Street,” Cramer predicted that the selling has run its course.

“Yeah, I think it’s the bottom,” Cramer said.

He noted that he expected a bigger rise in shares of SentinelOne Inc S and Palo Alto Networks Inc PANW following the hiccup from CrowdStrike. The market is telling you that there is not going to be a big change in market share here, Cramer said.

See Also: CrowdStrike CEO George Kurtz Announces Over 97% Of Windows Sensors Back Online After Global Outage

Last week, Cramer applauded CrowdStrike CEO George Kurtz’s response to the event and suggested that the selling in CrowdStrike shares would be short-lived. Kurtz immediately accepted blame for the outage last week, explaining that the issues were caused by “a defect found in a single content update.” 

Cramer said at the time that he expected people to forget about the security incident and return to CrowdStrike within three months because of the company’s “unbelievable technology.”

Cramer on Monday highlighted recent analyst commentary including high praise from JPMorgan calling the company a “masterclass on incident response,” a call for upside from current levels from UBS and a positive Morgan Stanley note, showing strong global reseller data.

“There are a lot of people calling the bottom,” Cramer said, adding that he is one of them.

Although he acknowledged that the selloff was probably warranted given the magnitude of the IT outage, he believes Kurtz has done a good job showing people that CrowdStrike is a winner, not a loser, he said.

CrowdStrike is due to report earnings for the second quarter sometime near the end of August. The cybersecurity company is expected to report earnings of 98 cents per share and revenue of $958.795 million, according to estimates from Benzinga Pro.

CRWD Price Action: CrowdStrike shares were up 3.02% at $263.62 at the time of publication, according to Benzinga Pro.

Read Next:

• To No One’s Surprise, Jim Cramer Praised CrowdStrike Less Than Two Months Ago ‘I Don’t Think That Domino Is Going To Fall’

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