Crowd Strike (CRWD) is a Cyber Security Company that engages in the provisions of network security solutions to corporations, enterprises and governments around the Globe. The Stock IPO’D in June 2019 and the stock has seen massive growth in the last year.
The share price has gone up over 100 percent and is currently trading at 262 which is on the expensive side considering the revenue and sales despite the company continuing to grow at a record pace.
The customer base has grown over 102 percent since 2019 and they are adding fortune 500 companies every quarter with 44 out of the top 100 fortune companies on the Forbes list as customers and some of there biggest clients being
-Credit Suisse
-Goldman Sachs
-ADP
Down from its ATH of 298 just a few days ago before Morgan Stanly decided to Downgrade CRWD to underweight and called it “Too Expensive” setting a new price target of 247 per share which is the lowest price target on the street with the highest being 360 per share
When that news came out pre market Monday morning November 15th, the stock took a 30 dollar haircut and lost over 10 percent in a single trading day bringing it down to a low of that’s right you guessed it 247-248 Before bouncing back up.
CRWD is a bit on the expensive side for a growth stock but I think Mondays 10 percent drop was a bit of an over reaction and with earnings coming up in December, I think we could easily see CRWD bounce back into the 280s or back to ATH with a run up into earnings.
Cyber security is one of the biggest issues facing the corporate world and national governments and with CRWD being one of the leaders in the field, I can see them blowing out earnings again and beating expectations again like they have continued to do each quarter.
Since that news on Monday the stock has since bounced back strong and closed at 261 Today, so it already had a strong bounce off that 247 and I think it will continue to get bought up by institutional buyers and will be back to previous highs despite the Morgan Stanley Downgrade
Link to previous earnings reports
CRWD Earnings Date, Forecast and Report (CrowdStrike) (marketbeat.com)
Institutional Ownership
Institutions own around 72 percent of the holdings in CRWD
CRWD - Ownership Information for CROWDSTRIKE HOLDINGS, INC. - MSN Money
Overall Im Bullish on CRWD and recommend you throwing it on your watchlist, keep an eye on it and follow how it moves. it tends to have big moves in a single day. Im looking at call options for December 17 Primary Expiration. I have not entered a position yet.
Options on CRWD are pricey, I always recommend buying In the money or at the money Calls but OTM could work also in an attempt to play a run up into earnings which is scheduled for December 1st.
This is my first DD I have written and would love any input, I have thrown a few trade ideas on the trading floor, and hope to bring some more trade ideas to the forum. Appreciate you All!
