CrowdStrike: Grinch Hasn't Arrived Yet
Looks like Jefferies is the grinch with the downgrade of CrowdStrike after the stock had fallen to nearly $100. The cybersecurity stock isn't a buy until it turns on such news. -CrowdStrike — Shares of the cloud-based software company slid more than 8% to hit a new 52-week low after Jefferies downgraded CrowdStrike to hold from buy. The Wall Street firm said 2023 “will be a more challenging fundamental year for growth names.”
Update - Dec. 30
The stock still appears headed lower with decisive new lows in the last week.
- CrowdStrike has fallen nearly 200 points from the peak, but Wall Street analysts remain very bullish on the cybersecurity specialist.
- The company faces sales cycle delays, questioning how crucial the cybersecurity products are for customers.
- CRWD stock trades at 8x FY24 sales targets suggesting Grinch has yet to steal the presents for shareholders.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
The cybersecurity space remains in high demand, but the products aren't always as crucial as most investors think. CrowdStrike Holdings () has to run into this scenario where macro issues have caused customers to delay new projects, lengthening sales cycles and adding costs to close deals. My investment thesis remains Bearish on the stocks with investors still too bullish on the cybersecurity specialist.
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