CrowdStrike Holdings Inc. (NASDAQ:CRWD) stock is trading lower by about 4% on Wednesday as investors pull back from high-multiple technology stocks. The Nasdaq is down 0.44%, while the S&P 500 has slipped 0.35%.
Record-High Rally Cools As Investors Take Profits
CrowdStrike’s decline appears tied largely to broader market weakness rather than a company-specific headline.
Decliners are outpacing advancers, while nine of the 11 S&P 500 sectors are trading lower. Technology is down about 0.48%, adding pressure to growth-oriented cybersecurity stocks.
Market breadth is also weak, with the advance-decline ratio near 0.2. Meanwhile, the Russell 2000 is down 1.31%. The moves suggest investors are reducing risk across the market.
CrowdStrike is falling much more sharply than the broader Technology sector. That gap points to additional profit-taking after the stock’s strong rally.
The pullback also comes one day after CrowdStrike hit a record high of $286.99.
BNP Paribas recently said CrowdStrike could gain more endpoint detection and response market share and that its long-term growth targets may prove conservative. However, the firm maintained a cautious stance on valuation and kept a $180 price forecast.
Technical Analysis
CrowdStrike remains well above its major moving averages despite Wednesday’s decline.
The stock is trading about 6.4% above its 20-day simple moving average of $251.71. It is also roughly 71.9% above its 200-day SMA of $155.84.
The 20-day SMA remains above the 50-day SMA. In addition, the 50-day SMA is above the 200-day SMA after a golden cross formed in May. That setup continues to support the longer-term bullish trend.
Momentum also remains constructive. The MACD is above its signal line, while the histogram remains positive. That suggests selling pressure has eased compared with the previous downswing.
The 52-week high of $286.99 represents the next key resistance area if buyers return. On the downside, the 20-day SMA near $251.71 could serve as the first major support zone.
- Key resistance: $286.99, near the 52-week high.
- Key support: $251.71, near the 20-day SMA.
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Earnings And Analyst Outlook
CrowdStrike’s next major catalyst is its estimated Dec. 1 earnings report. Analysts expect earnings of 31 cents per share, up from 24 cents a year earlier. Revenue is projected at $1.51 billion, compared with $1.23 billion in the year-ago period.
The stock trades at a very high earnings multiple, reflecting strong expectations for future growth.
CrowdStrike carries a Buy consensus rating and an average price forecast of $250.33 across 50 analysts. Price forecasts range from $132 to $425.
StoneX on Tuesday maintained a Buy rating and raised its price forecast to $325. TD Cowen on Oct. 2 maintained a Buy rating and lifted its price forecast to $280. Morgan Stanley on Sept. 21 maintained an Overweight rating and raised its price forecast to $254.
Benzinga Edge Rankings
CrowdStrike scores strongly on Growth and Momentum in Benzinga Edge Rankings, but its Value score remains weak.
Its Momentum score stands at 98.67, reflecting strong relative price performance despite Wednesday’s decline.
The Growth score of 97.26 highlights the company’s strong growth profile. However, its Value score is just 0.26, showing that investors are already paying a significant premium for that growth.
The combination creates a classic high-growth setup. Strong momentum can support further gains, but the premium valuation can also amplify losses when investors turn defensive.
Top ETF Exposure
CrowdStrike is a major holding in several cybersecurity and software-focused ETFs.
The First Trust Nasdaq Cybersecurity ETF (NASDAQ:CIBR) has an 8.66% weighting in CrowdStrike. The Global X Cybersecurity ETF (NASDAQ:BUG) has a 7.49% weighting, while the iShares Expanded Tech-Software Sector ETF (BATS:IGV) has a 7.15% weighting.
Because CrowdStrike carries a sizable weight in these funds, large ETF inflows or outflows can add to buying or selling pressure in the stock.
Price Action
CRWD Price Action: CrowdStrike shares were down 4.09% at $267.44 at the time of publication on Wednesday, according to Benzinga Pro data.
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