TendieTensor TendieTensor
You’re browsing as
Guest
Free Preview
Sign in/sign up to unlock all features.

News  ›  Investing.com

CrowdStrike Trades in a Tight Range as Growth Strength Meets Valuation Limits

Investing.com Logo Investing.com By Itai Smidt
CrowdStrike Trades in a Tight Range as Growth Strength Meets Valuation Limits

CrowdStrike demonstrates strong operational fundamentals with 22% revenue growth, 23% ARR growth, and accelerating net-new ARR of 265 million dollars (73% YoY increase). However, the stock trades at premium valuations (23x FY26 revenue, 18.8x FY27 revenue) roughly double peer multiples, leaving little room for error. While the company benefits from a large TAM, powerful telemetry flywheel, and agentic AI leadership, valuation risks and operational concerns from the July 2024 outage limit upside. The analyst rates the stock as a Hold at current levels.

Insights
CRWD   neutral

Strong fundamentals with 22% revenue growth, 23% ARR acceleration, and robust free cash flow (24% margin) support a bullish long-term thesis. However, premium valuation at 23x FY26 and 18.8x FY27 revenue—roughly double peer multiples—combined with operational risks from the July 2024 outage and competitive threats from Microsoft leave limited margin of safety. Rated as a Hold for current shareholders but not compelling for new capital.