Here's How Much Traders Expect CrowdStrike Stock To Move After Earnings

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Key Takeaways

  • CrowdStrike is scheduled to release its fourth-quarter results after the closing bell Tuesday, with analysts expecting the cybersecurity provider to report rising revenues and profits.
  • Options pricing suggests traders expect CrowdStrike’s stock could move as much as 7% in either direction in the days following the results.

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CrowdStrike is set to report earnings after the closing bell Tuesday, with traders anticipating a big move in the cybersecurity provider’s stock following the results.

Options pricing suggests traders expect CrowdStrike (CRWD) stock could move as much as 7% in either direction by the end of this week. A shift of that size from Monday’s close could push the shares back above $412, recovering some of their recent losses—or drag them back down to about $357.

Shares of CrowdStrike shares have plunged 18% since the year began, amid a broader rout in software stocks driven by fears of AI disruption. However several analysts have suggested they view the sell-off as overdone, and expect the company to benefit from growing AI-related risks.

Why This Is Significant

A strong showing from CrowdStrike could potentially boost confidence in the stock and broader cybersecurity sector, though it may still face an uphill battle from weak sentiment surrounding software stocks.

Ahead of Tuesday’s report, analysts at Jefferies said they expect CrowdStrike to top consensus estimates given strong signals from their field checks. “We only envision ‘extra’ positive growth revisions,” they wrote.

CrowdStrike is seen reporting adjusted earnings per share of $1.10 on a nearly 23% year-over-year jump in revenue to $1.3 billion for the fourth quarter, according to estimates collected by Visible Alpha.

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Wall Street analysts are largely bullish on CrowdStrike’s stock. Of the 24 analysts with current ratings compiled by Visible Alpha, 21 have issued “buy” recommendations for the stock, compared to three neutral ratings. Their mean target around $542 would suggest 40% upside from Monday’s close.

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