{"id":54499,"date":"2023-08-29T16:36:30","date_gmt":"2023-08-29T20:36:30","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/crowdstrikes-stock-lags-cybersecurity-peers-as-it-is-downgraded-ahead-of-earnings\/"},"modified":"2023-08-29T16:36:33","modified_gmt":"2023-08-29T20:36:33","slug":"crowdstrikes-stock-lags-cybersecurity-peers-as-it-is-downgraded-ahead-of-earnings","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=54499","title":{"rendered":"CrowdStrike\u2019s stock lags cybersecurity peers as it is downgraded ahead of earnings"},"content":{"rendered":"
\n

CrowdStrike Holdings Inc. shares lagged the mostly positive cybersecurity sector Monday after an analyst, writing of potential risk to estimates, downgraded the stock two days ahead of the company\u2019s earnings report. <\/p>\n

CrowdStrike shares
\n CRWD,
\n +1.85%<\/bg-quote>
\n fell as much as 3.6% Monday to an intraday low of $144.17. They were the worst performing name within the ETFMG Prime Cyber Security exchange-traded fund
\n HACK,<\/span>
\n which was up 0.4% Monday, buoyed by slight gains across the sector. Only a few others names, like Zscaler Inc.
\n ZS,
\n +2.16%<\/bg-quote>
\n and Check Point Software Technologies Ltd.
\n CHKP,
\n +0.73%<\/bg-quote>,<\/span>
\n were in negative territory, each down less than 1%. Meanwhile, the S&P 500
\n SPX
\n was up 0.6%.<\/p>\n

\n

In a Monday note, Morgan Stanley analyst Hamza Fodderwala downgraded CrowdStrike\u2019s stock to equal weight from overweight and trimmed his price target to $167 from $178 ahead of the company\u2019s fiscal second-quarter earnings report, due Wednesday after the market close.<\/p>\n

In answer to the question, \u201cWhy now?\u201d Fodderwala said he sees downside to consensus 2023 and 2024 estimates, which assume a reacceleration of net new annual recurring revenue, or ARR, a software-as-a-service metric that shows how much revenue the company can expect based on subscriptions.<\/p>\n

Analysts surveyed by FactSet estimate, on average, ARR of $3.14 billion for the quarter ending in October and $3.38 billion for the quarter ending in January. For fiscal 2024, analysts forecast ARR of $4.29 billion.<\/p>\n

Instead of a reacceleration, another cut to ARR estimates in the second half of 2023 \u201cseems likely,\u201d according to Fodderwala.<\/p>\n

In June, CrowdStrike shares fell under pressure following a less-than-perfect outlook. <\/p>\n

\u201cOur cautious view is based on more recent checks and data points over the last month,\u201d Fodderwala said, citing a further slowdown in key industry verticals like tech, telecom and retail, with Target Corp.
\n TGT,
\n +2.21%<\/bg-quote>
\n and Home Depot Inc.
\n HD,
\n +1.06%<\/bg-quote>
\n among CrowdStrike\u2019s largest customers.<\/p>\n

Fodderwala also expects headwinds to cloud consumption.<\/p>\n

\u201cWhile enterprises may be several quarters into their cloud optimization efforts, the pace of recovery still remains uncertain,\u201d the analyst said. \u201cPublic cloud deployments have been a growing contributor to CrowdStrike\u2019s top line.\u201d<\/p>\n

Much of CrowdStrike\u2019s new ARR last year was likely from Amazon.com Inc.\u2019s
\n AMZN,
\n +1.33%<\/bg-quote>
\n Amazon Web Services, the company\u2019s largest go-to-market partner and more than a 10% contributor to ARR. <\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

CrowdStrike Holdings Inc. shares lagged the mostly positive cybersecurity sector Monday after an analyst, writing of potential risk to estimates, downgraded the stock two days ahead of the company\u2019s earnings report. CrowdStrike shares CRWD, +1.85% fell as much as 3.6% Monday to an intraday low of $144.17. They were the worst performing name within the […]<\/p>\n","protected":false},"author":1,"featured_media":54500,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-54499","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\nCrowdStrike\u2019s stock lags cybersecurity peers as it is downgraded ahead of earnings | iFintechWorld<\/title>\n<meta name=\"description\" content=\"CrowdStrike Holdings Inc. shares lagged the mostly positive cybersecurity sector Monday after an analyst, writing of potential risk to estimates,\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=54499\" \/>\n<meta property=\"og:locale\" content=\"en_US\" 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