CrowdStrike (No Paywall)

Last updated on Jul 21, 2024

Moving To Distribute Rating; Removing From Our High Beta Model Portfolio

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Could Go Either Way - Why Wait To Find Out?

by Alex King

Every piece of analysis one could conduct as regards Crowdstrike's business, its stock price, and the ramifications of last week's calamitous product failure, can be summed up in this meme:

It is possible that the company prospers after a period in purgatory; possible that the stock moons after a selloff; but it's also possible that the opposite happens. And from a securities analysis perspective my own view is, why take the risk? There are so many other places to put money to work, why wait to find out how the company and its stock makes it through - particularly since the stock is already at an extended price, way above where we rated it at Accumulate?

We had rated $CRWD at Accumulate between $90-135/share so anyone buying at the top of our Accumulation Zone may as of Friday be around 125% in profit, and if buying at the low end of our Accumulation Zone, may be at around 235% in profit. We had thought the stock could reach $525 in time but now see that as a very long haul and perhaps unachievable.

So we take the following actions:

Move from "Hold" to "Distribute" rating
Remove the stock from our High Beta Model Portfolio (our model portfolios are available to Inner Circle and RIA - Insight Pro susbcribers).

Numbers are as per our most recent earnings report (here).

Chart is as follows - you can open a full page version, here:

Any questions, reach out in comments to this note, in Slack Chat (Inner Circle subscribers only), or using the contact form on our website (here: https://www.cestriancapitalresearch.com/contact/ ).

Cestrian Capital Research, Inc - 21 July 2024

DISCLOSURE - Cestrian Capital Research, Inc staff personal accounts hold no positions in $CRWD.