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CrowdStrike (CRWD) shares slip lower in Wednesday's pre-market trading, coming off of the cybersecurity firm's fourth quarter earnings results that beat expectations, while falling short of forecasts for its current first quarter and the full year.
Seana Smith and Madison Mills dive into CrowdStrike's earnings figures — which were reported after the market close on Tuesday — and the analyst commentary around the stock.
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
This post was written by Luke Carberry Mogan.
of the session or at least of the morning trade here, pre-market trading off just about 7%. We could possibly be headed for the largest intraday decline that we have seen since going back to that outage at the end of July. But again, Maddie, this brings up some questions just about demand, what exactly that looks like, the ability for their increasing demand to offset the challenges that are still obviously showing or rearing its head just a little bit when it comes to that outage several months ago.
Yeah, and it's interesting to take a look at the guidance as well, which a lot of analysts are, of course, citing this morning, talking about how the 2026 guidance is prudent to look at according to Truist, saying that it remains a cautious approach moving forward because of that July 19th incident. You also have RBC talking about the revenue outlook being in line with expectations, but profitability was below consensus. I think it's interesting to just take a look at the analyst reaction here. You have a price target raise from Raymond James this morning, but it looks like the rest of the movement in terms of analyst ratings is in the form of cuts. You have a cut to the price target from Stifel and you also have a cut from Mizuho this morning. So interesting to see that Raymond James sticking out with that raise on its price target, but maintaining its outperform rating as well. And I'm just going to actually really quickly take a look at the broader analyst ratings on this stock here to give that broader context here. It takes, it looks like you still have 75% of the street's got a buy about 25% still on hold for CrowdStrike.
Yeah, and it, and it's interesting just to see how many analysts do still, or some of the analysts that do still remain bullish just their thesis right now. I was going through the quick reaction from Dan Ives over at Wedbush and he was saying the initial thought here following that outage was that renewal and new business fallout was going to be huge here. And he was saying basically saying putting in perspective that the bark was a lot, was a lot worse than the bite, that the gross retention rate does remain at just over 97%, so that's reason enough to be encouraged. So yes, there might be small bumps in the road here as you take a look at the next potentially couple quarters or a couple of months, but again, looking ahead here to the rest of 2025, at least in his view, he's still saying that a lot of this momentum is enough to like at this point.
Absolutely.
