Movement Alert|CrowdStrike Holdings, Inc. Falls 4.02% in Regular Trading, BofA Warns of Elevated Expectations Ahead of Q2 Earnings

Market Focus08-19 21:54

On August 19, CrowdStrike Holdings, Inc. declined 4.02% in regular trading, trading at $203.335/share, with turnover of $295 million.

On the news front, BofA Securities issued a report warning that CrowdStrike faces excessively high expectations heading into its Q2 results due August 26. The firm noted that following last quarter's negative stock reaction to a mere 2-3% topline beat, investors may now need to see a greater than 3% beat to Q2/FY net new annual recurring revenue consensus to justify current levels, especially after a 19% post-Q1 rally in shares. Net new ARR is forecast to rise 29.3% year-over-year, roughly in-line with consensus.

Despite multiple target price upgrades on the same day — Truist raising to $245, Benchmark to $250, and Barclays to $235 — the high-expectation overhang and broader sector weakness weighed on shares. Peer Palo Alto Networks fell 3.17% in tandem. Market consensus expects Q2 revenue of $1.44 billion, up 25.3% year-over-year, with adjusted EPS of $0.29.

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