CrowdStrike stock price popped on Thursday as the company projected strong growth in the quarter. It jumped by 12% to $502, its highest level since July 10 this year. It has jumped by 70% from its lowest level in April.
CrowdStrike projects strong growth
The CRWD stock price has been in a strong uptrend in the past few days, helped by its strong earnings and major updates.
For example, it recently teamed with Nvidia, the biggest company in the world, to build, power, and secure the agentic ecosystem. It will have an integration of the Charlotte AI Agent Work with Nvidia Nemotron.
The partnership will also extend the Falcon platform to provide protection and governance across AI agents built with Nvidia’s NeMo tools.
CrowdStrike also acquired Pangea, a company that will extend its Falcon platform and deliver the first AI Detection and Response (AIDR) solutions. Its goal is to become a major cybersecurity company in the AI space.
The CRWD stock also jumped after the management delivered a bullish forecast for its business. In a statement, the management reiterated that it will have a 20% annual ARR in fiscal 2027.
It also expects to double its ARR every five years, reaching $20 billion by fiscal 2036. This is a notable increase for a company that made about $4.6 billion in the last fiscal year.
Strong growth but valuation concerns remains
The most recent financial results showed that the company’s revenue continued growing in the second quarter of fiscal year 2026.
These results revealed an ARR of $4.66 billion, up from $3.86 billion in the same period last year.
As a result, the company’s revenue rose to $1.16 billion, up from $964 million in the same period last year.
Analysts expect the company’s growth transaction will continue as cybersecurity demand gains steam.
The average estimate is that CrowdStrike’s revenue will grow by about 20% in this quarter to $1.22 billion, followed by 22% in the next one. This will bring its annual revenue to $4.79 billion. The company will then grow by 21.9% next year to $5.83 billion.
Most importantly, CrowdStrike has become a highly profitable company, with its earnings per share (EPS) expected to move from $3.93 last year to $4 this year
One of the most lingering concerns about the company is that it has become a highly overvalued company as its forward price-to-earnings ratio is 149, while its PEG multiple is about 5.6. In theory it is hard to justify these valuations.
The company’s rule of 40 multiples is also much lower than where it should. This multiple is calculated by adding the revenue growth and the profit margin. In this case, its revenue growth is about 22% compared with the profit margin of minus 7%, giving it a ratio of 15%.
CrowdStrike stock price analysis
CRWD stock chart | Source: TradingView
The daily timeframe chart shows that the CrowdStrike stock price has been in a strong uptrend in the past few days, reaching a high of $500, its highest level since July.
CrowdStrike is slowly forming a double-top pattern at $517 and a neckline at $402, its lowest level on September 3.. There, this pattern points to a potential retreat as long as it is below the top point at $517. A move above that level will point to more gains, potentially to $550.
The post CrowdStrike stock analysis: valuation, double-top points to a retreat appeared first on Invezz
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