CrowdStrike loses 6% as quarterly guidance disappoints Wall Street 📉

7:12 PM 27 November 2024

Shares of cybersecurity company CrowdStrike (CRWD.US) lose today almost 7% despite strong quarter, as cybersecurity provider missed Q4 2024 guidance. A software update in July caused widespread disruptions across industries, leading to lawsuits, including a $500 million claim by Delta Air Lines. Despite that, CEO George Kurtz remains optimistic, emphasizing ability to recover and accelerate ARR growth by 2026. Investors expect that Falcon platform and new Next-Gen SIEM offering will drive future growth.

  • EPS: Adjusted earnings of $0.93 per share (beating estimates of $0.81).
  • Revenue:  $1.01 billion, a 29% increase year-over-year.
  • Annual Recurring Revenue (ARR): Surpassed $4 billion, showcasing sustained momentum in its subscription-based model.
  • Guidance miss: Expected Q4 EPS of $0.84-$0.86 fell slightly below analyst expectation of $0.87

The more cautious outlook has raised investor concerns about CrowdStrike's recovery from a significant software update failure in July, which disrupted millions of Microsoft Windows machines across various sectors, including air travel, banking, and healthcare. TD Cowen reiterated a $380 price target, citing the Q3 dip as a short-term setback rather than a long-term derailment.

Start investing today or test a free demo

Open real account TRY DEMO Download mobile app Download mobile app

CrowdStrike (D1 interval)

On a D1 stock chart, we can see a potential bearish head and shoulders pattern. Falling below EMA50 and EMA200 would be also confirmation of a potential bearish flag technical formation.

 
 
 

Source: xStation5

Share:
Back

Join over 1 000 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits