CrowdStrike Stock Is Moving Lower: What's Going On?

CrowdStrike Holdings Inc CRWD shares are trading lower Thursday on the heels of the cybersecurity company's first-quarter results. Analysts are moving in different directions following the print. 

• Q1 Revenue: $692.58 million beat estimates of $677.37 million
• Q1 EPS: 57 cents beat estimates of 51 cents

"CrowdStrike's first quarter results exceeded our guided metrics and reached new financial milestones, delivering the winning combination of growth, profitability and free cash flow at scale," said George Kurtz, co-founder, president and CEO of CrowdStrike.

"Our demonstrated leadership in leveraging AI to drive better security outcomes and consolidate security spend strategically positions CrowdStrike to win in our markets."

Outlook: CrowdStrike sees second-quarter revenue in the range of $717.2 million to $727.4 million versus estimates of $718.9 million. The company also anticipates earnings between 54 and 57 cents per share versus estimates of 54 cents per share.

For full-year 2024, CrowdStrike expects revenue will come in between $3 billion and $3.037 billion versus estimates of $3 billion. The company also anticipates earnings of $2.32 to $2.43 per share versus estimates of $2.32 per share.

CrowdStrike also announced a strategic partnership with Pax8 Thursday morning to increase access to CrowdStrike Falcon platform product offerings.

Analyst Assessment: 

• Baird analyst Shrenik Kothari maintained CrowdStrike with an Outperform and lowered the price target from $185 to $180.
• MoffettNathanson analyst Jackson Ader maintained CrowdStrike with an Outperform and lowered the price target from $229 to $217.
• Stifel analyst Brad Reback maintained CrowdStrike with a Hold and raised the price target from $125 to $128.
• BMO Capital analyst Keith Bachman maintained CrowdStrike with an Outperform and raised the price target from $152 to $165.
• Wells Fargo analyst Andrew Nowinski maintained CrowdStrike with an Overweight and raised the price target from $165 to $175.
• JMP Securities analyst Trevor Walsh reiterated CrowdStrike with a Market Outperform and maintained a $235 price target.

See Also: What's Going On With Salesforce Stock Today?

CRWD Price Action: Although the company delivered better-than-expected results and issued strong guidance, the stock may be reacting negatively due to elevated expectations stemming from the recent surge in shares. CRWD shares are up more than 35% over the last month.

CrowdStrike shares were down 9.64% at $144.70 at the time of publication, per Benzinga Pro.

Photo: Cliff Hang from Pixabay.