• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

CrowdStrike stock could drop to $275 amid valuation concerns, analyst warns

by July 18, 2024
written by July 18, 2024

CrowdStrike Holdings Inc. (NASDAQ: CRWD), a prominent name in the cybersecurity sector, is facing a challenging outlook according to a recent analysis by Redburn Atlantic. 

Analyst Nina Marques has issued a “sell” rating for CrowdStrike, forecasting a potential decline in its stock price to $275—a further 23% drop from its previous close. 

This comes on the heels of a 13% decline in the company’s shares over the past month, signaling growing investor concern.

Why is Redburn Atlantic bearish on CrowdStrike stock?

Nina Marques’ downgrade is rooted in valuation concerns rather than the quality of CrowdStrike’s products. 

Despite recognizing the company’s strong cybersecurity offerings, Marques points out that the current stock price does not reflect potential market slowdowns. 

Her caution is based on the belief that the market has not fully factored in a possible deceleration in growth.

Marques is particularly wary of CrowdStrike’s performance in the large enterprise sector. 

She notes that the company has struggled to establish a more substantial presence in this key market segment. 

Additionally, Marques expressed skepticism about the company’s cross-sell opportunities and cited intense competition in cloud security, identity management, and security information and event management (SIEM) as factors contributing to her bearish outlook.

Valuation and market expectations

CrowdStrike’s stock is currently trading at approximately 23 times its estimated enterprise value to sales ratio for the upcoming fiscal year. 

Marques argues that this valuation is significantly higher compared to its cybersecurity peers, who trade at about half that multiple. 

She believes the high valuation overestimates the extent to which IT budgets will expand to accommodate more advanced cybersecurity solutions.

While generative artificial intelligence (Gen-AI) is anticipated to boost demand in the short term, Marques suggests that the market may have overestimated its long-term impact. 

She expects Gen-AI to provide only a temporary uplift in demand rather than a sustained growth trend.

CrowdStrike’s shares are currently trading at around eight times their price at the beginning of the COVID-19 pandemic, reflecting the substantial gains they have achieved over the past few years. 

However, Marques’ analysis suggests that these gains may be unsustainable given the current market conditions and competitive pressures.

Recent developments and guidance

In June, CrowdStrike reported first-quarter financial results that surpassed Street expectations. However, despite these positive results, the company’s stock price declined due to cautious guidance for the future. 

CEO George Kurtz highlighted the strengths of CrowdStrike’s Falcon platform, emphasizing its unique architecture and competitive advantages in addressing major cybersecurity and IT challenges.

For fiscal Q2, CrowdStrike has projected revenue between $958 million and $961 million, with earnings up to 99 cents per share. 

Despite these optimistic projections, the muted guidance has contributed to investor unease.

Earlier this week, CrowdStrike announced the launch of Falcon Complete Next-Gen MDR, aiming to enhance its cybersecurity offerings. 

However, even with these new developments, the prevailing sentiment among analysts remains cautious.

As CrowdStrike navigates these turbulent waters, investors should carefully consider these factors and the potential risks before making investment decisions.

The post CrowdStrike stock could drop to $275 amid valuation concerns, analyst warns appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Netflix reports strong Q2 earnings with 34% ad-tier membership growth, but stock falls
next post
Citadel’s Ken Griffin buys a stegosaurus for $45 million in a record auction sale

related articles

Asian markets close: Nikkei, Kospi down; Sensex closes...

May 19, 2025

Qualcomm unveils AI chips for data centres with...

May 19, 2025

Best crypto to buy now: Bitcoin Pepe leads...

May 19, 2025

JPMorgan cuts Netflix rating, citing balanced risk-reward post-rally;...

May 19, 2025

Bitcoin ETF open interest dips 5% to $29.47B...

May 19, 2025

US stocks slip in the red on Monday:...

May 19, 2025

Should Klarna IPO remain on watch list after...

May 19, 2025

Why this brokerage downgraded UnitedHealth’s rating to ‘hold’

May 19, 2025

Nvidia opens NVLink Fusion ecosystem, expands Taiwan footprint...

May 19, 2025

Cathie Wood says Trump’s tariffs could unlock tech...

May 19, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Kamala Harris’ new climate director said she is hesitant to have children because of climate change threats

    September 10, 2024
  • President-elect Trump taps slew of administration picks days before inauguration

    January 17, 2025
  • Unearthed footage of Barron Trump speaking with mom’s accent spreads like wildfire after dad’s massive win

    November 24, 2024
  • Biden White House turned over Trump, Pence government cellphones to FBI as part of anti-Trump agent’s case

    March 14, 2025
  • Bitcoin price continues to pull back on Monday

    September 2, 2024

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 4

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (4,723)
  • Investing (624)
  • Stock (773)

Latest Posts

  • Nikki Haley responds after Trump says she won’t be part of new cabinet, says she wishes him ‘great success’

    November 10, 2024
  • Hezbollah is the ‘X-factor’ in looming Israel, Iran war with ‘nation state capabilities’

    August 10, 2024
  • Elon Musk quietly donates ‘very substantial’ amount to PAC to canvass Hispanic voters

    October 22, 2024

Recent Posts

  • IDF conducts strike in Beirut targeting commander behind attack on children’s soccer field

    July 30, 2024
  • DAVID MARCUS: Dem senators’ shameless antics show why party is in shambles

    January 31, 2025
  • Dem strategists say Harris ‘only practical choice’ as party leaders begin endorsing her

    July 21, 2024

Editor’s Pick

  • Harris campaign plagued by surrogates’ gaffes: ‘Colossally inept campaign’

    October 23, 2024
  • Trump FBI director pick Kash Patel ‘instrumental in unraveling’ Russia collusion hoax, former chair says

    December 10, 2024
  • With 26 days until voting starts, ‘election season’ kicks off sooner than you think

    August 11, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock