CrowdStrike loses 6% as quarterly guidance disappoints Wall Street 📉

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.

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