As AI increases demand for cybersecurity, CrowdStrike shares rise
Following the company’s results and second-quarter revenue prediction that surpassed Wall Street estimates due to robust demand for its cybersecurity technology, CrowdStrike Holdings’ shares saw an 11.3% boost in value.
CrowdStrike Holdings’ (CRWD.O) shares saw an 11.3% increase in value following the company’s results and second-quarter revenue forecast that exceeded Wall Street estimates due to high demand for its cybersecurity technology. According to LSEG statistics, CrowdStrike last traded at $340.26 after predicting late on Tuesday that current-quarter revenue would range between $958.3 million and $961.2 million, below analysts’ average projections of $954.4 million.
In addition, it increased its revenue projection for the entire year 2025 from $3.92 billion to $3.99 billion, with a new target of $3.98 billion to $4.01 billion. CrowdStrike reported new tab sales of $921 million for the first quarter that ended on April 30, exceeding analysts’ projections of $904.7 million. Adjusted profits per share were 93 cents, compared with estimates of 89 cents. For eight consecutive quarters, CrowdStrike’s adjusted earnings have exceeded predictions, and the company has met or exceeded revenue targets.
Analyst Tal Liani of BofA Securities stated that the company has “defied the laws of gravity yet again” and expressed confidence in both its robust financial profile and capacity to spur expansion. Liani restated his ‘buy’ recommendation, citing a $400 price objective. The company may be helped by an S&P 500 inclusion, according to Morgan Stanley analyst Hamza Fodderwala, who rates the stock as “overweight” and has a $422 price objective.
In the meantime, BMO lowered its objective to $410 from $425, and BTIG lowered its aim to $402 from $432. Oppenheimer increased its goal from $355 to $400. Zscaler’s (ZS.O.) new tab shares increased on Friday after it announced robust demand and raised its 2024 full-year profit projection. Meanwhile, rival Palo Alto Networks (PANW.O.), which opened a new tab on May 21, issued a fourth-quarter billings forecast that was roughly in line with expectations. Palo Alto shares increased 1.7%, and Zscaler shares increased 4% on Wednesday.
Also read: Unveiling the Ethical Imperatives: Navigating the Intersection of AI and Cybersecurity
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