CrowdStrike Faces Valuation Test Before Key Earnings Report\n\nAugust 12, 2025\n\nKey Points\n* CrowdStrike expands AI-native Falcon platform with new security tools to address growing AI cybersecurity risks.\n* CRWD stock down nearly 10% in 30 days but up 79% in 2025 amid strong revenue growth and market share gains.\n* Forward P/E at 771x reflects high stock-based compensation; earnings results could trigger a technical rebound or buying opportunity.\n\nCrowdStrike **$430.92** +4.49 (+1.05%) As of 09:38 AM Eastern This is a fair market value price provided by Polygon.io. 52-Week Range $240.01 ▼ $517.98 Price Target $461.17 is down 9.76% in the last 30 trading days. However, CRWD stock is still up 79% in 2025, making it one of the best-performing in the S&P 500. The stock’s year-long rally started after the much-publicized outage caused by a faulty software update. The company took aggressive steps in damage control that restored customer confidence in the company.\n\nGood public relations wouldn’t have meant much if the company didn’t back it up with results. CrowdStrike has done well with revenue and earnings, increasing year-over-year (YOY). However, two weeks before the company reports earnings, CrowdStrike is facing concerns about valuation. That’s part of the reason the stock is down ahead of earnings. To be fair, CrowdStrike isn’t the only company facing valuation concerns, but investors need to consider how much they want to pay for CRWD stock with earnings fast approaching.\n\nCrowdStrike Expands Its AI-Native Falcon Platform\nOne point for investors to consider is the company’s expansion of its AI-native Falcon platform. The company has recently announced the launch of AI Systems Security Assessment and AI for SecOps Readiness. These two services allow customers to secure AI systems while safely integrating AI into their security operations.\n\nCrowdStrike Continues to Increase Its Share of the TAM\nFor the first quarter of its 2026 fiscal year, CrowdStrike reported $194 million in new net annual recurring revenue (ARR). ARR is a key metric for cybersecurity companies because it shows how much of the topline the company can retain year-over-year. The company predicts that the total addressable market (TAM) for AI-native cybersecurity platforms will be $116 billion for the current calendar year, rising to $250 billion by 2029. Now consider that CrowdStrike just notched its first $1 billion in quarterly revenue in its most recent quarter. That means CrowdStrike has under 5% market share. However, management sees the long-term opportunity as more customers adopt its platformization strategy. Investors may need to ensure they’re viewing the opportunity clearly.\n\nLooking at CrowdStrike’s Profit\nInvestors commonly use the price-to-earnings (P/E) ratio when considering a company's valuation. CrowdStrike currently has a forward P/E of 771x. That’s a little deceiving because the company reported negative GAAP earnings of 44 cents in the last quarter. That was attributable to high stock-based compensation (SBC). Paying employees with stock is not unusual, particularly for a growing technology company like CrowdStrike. However, the company does have an unusually high amount of SBC, similar to that of Palantir, which also faces concerns about a high valuation. CrowdStrike’s FY2026 outlook suggests the company can generate over $1.3 billion in adjusted operating profit, making its lofty forward multiple look reasonable on a non-GAAP basis. However, on a GAAP basis, stock-based compensation running at nearly 20% of revenue will weigh on earnings. So what’s next? CrowdStrike’s guidance implies it will still have less than 5% share of its $103 billion core cybersecurity market. To triple its non-GAAP operating profits, the company would have to increase its forecasted revenue by about 2.2x, meaning a 10% market share. That would put its annual revenue on par with a company like Palo Alto Networks.\n\nCrowdStrike Stock Forecast Today\n12-Month Stock Price Forecast: $461.17\n8.15% Upside\nModerate Buy Based on 46 Analyst Ratings\nCurrent Price | $426.43\nHigh Forecast | $555.00\nAverage Forecast | $461.17\nLow Forecast | $275.00\n\nThe stock has crossed below its 50-day simple moving average (SMA), and its MACD is flattening, but may be showing signs of flattening. That’s consistent with an RSI around 36, which suggests a strong earnings report could cause a trend reversal. If that’s the case, investors should look at $475 as an area of resistance. If the stock can push past that, it could signal a broader rally back above $500 and towards all-time highs. If the results disappoint, areas of support could be at $400 (a round number and near February 2025 lows). If it slices below that, investors would have a significant buying opportunity around $375 to $380.\n\nBefore you consider CrowdStrike, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and CrowdStrike wasn't on the list. While CrowdStrike currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys. Discover the next wave of investment opportunities with our report, 7 Stocks That Will Be Magnificent in 2025. 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CrowdStrike Faces Valuation Test Before Key Earnings Report

CrowdStrike is facing a valuation challenge ahead of its upcoming earnings report, despite strong revenue growth and market share gains. The company has expanded its AI-native Falcon platform with new security tools for AI systems and SecOps readiness. It reported $194 million in new net annual recurring revenue (ARR) for the first quarter of its 2026 fiscal year and forecasts a total addressable market (TAM) of $116 billion for AI-native cybersecurity in 2025, growing to $250 billion by 2029. CrowdStrike achieved its first $1 billion in quarterly revenue, though it still holds under 5% market share in the $103 billion core cybersecurity market. The company has a forward P/E ratio of 771x, driven largely by high stock-based compensation, which results in negative GAAP earnings of 44 cents per share. Management projects over $1.3 billion in adjusted operating profit for FY2026, suggesting the high multiple may be justified on a non-GAAP basis. The stock has declined 10% in 30 days but remains up 79% in 2025. Analysts have a moderate buy rating, with a price target of $461.17, and the stock is currently trading at $426.43. Technical indicators suggest a potential trend reversal if earnings are strong, with resistance at $475 and support at $400 if results disappoint.