CrowdStrike Holdings Inc. (NASDAQ:CRWD) is having a monster session Thursday, with shares up about 19% after the cybersecurity company delivered what analysts called its strongest quarter yet.
For ETF traders, the move is being amplified even further.
The Corgi CRWD 2x Daily ETF (BATS:CRWC) and GraniteShares 2x Long CRWD Daily ETF (NASDAQ:CRWL) are both surging roughly 38%, as the leveraged funds seek to deliver twice CrowdStrike’s daily performance before fees and expenses.
CRWC launched in July and carries a 0.45% expense ratio, while CRWL, which launched a couple of years ago, has a 1.50% net expense ratio.
AI Is Becoming A Cybersecurity Customer
The bigger story behind CrowdStrike’s best ever one-day rally isn’t simply the earnings beat. It is the company’s emerging opportunity to turn AI from a perceived threat to cybersecurity software into a new source of demand.
CrowdStrike generated $1.47 billion in revenue, up 25.8% year over year and above the $1.44 billion consensus cited in the company update.
AI Detection and Response, or AIDR, nearly tripled its annual recurring revenue sequentially. Cloud Security, Next-Gen SIEM and Identity Protection also continued to expand rapidly.
Importantly, AIDR represents an additional paid module running through CrowdStrike’s existing Falcon platform rather than a replacement product.
Wall Street Raises the Bullish Bar
The AI-security opportunity helped trigger a wave of target-price increases. Eleven Wall Street firms raised their CrowdStrike price targets Thursday, including RBC Capital, UBS, Rosenblatt, Scotiabank, Needham, DA Davidson and Morgan Stanley.
RBC lifted its target to $260 from $256, while UBS, Rosenblatt, Scotiabank and Needham moved to $250. DA Davidson raised its target to $245 and Morgan Stanley to $238.
Why the ETFs Are Moving So Much
The math behind Thursday’s ETF rally is straightforward: when CRWD rises sharply in a single session, a fund targeting 2X its daily return is designed to magnify that move.
But the leverage cuts both ways.
CRWC explicitly resets its exposure every trading day, meaning its return over several days can differ significantly from twice CrowdStrike’s cumulative return because of compounding and volatility.
CRWL similarly targets 200% of CRWD’s daily performance and uses derivatives to obtain that exposure.
That makes Thursday’s surge a clear example of how single-stock leveraged ETFs can turn a major earnings-driven move into an even larger trading opportunity, while also magnifying the downside if the next move goes the other way.
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