1 Reason to Avoid CrowdStrike Stock
Fast-growing cybersecurity company CrowdStrike (NASDAQ: CRWD) reported strong fiscal second-quarter results earlier this week. Its fiscal second-quarter revenue and adjusted earnings per share both came in higher than analysts' consensus forecasts, as annual recurring revenue soared 59% year over year, surpassing $2 billion for the first time. Following the report, a handful of analysts raised their 12-month price targets for the stock, with many of these price targets representing significant upside from where the stock is trading today.
Yet shares have been falling. What gives? Is this just market noise, or is there good reason for the stock to come down?
While it's true that CrowdStrike's business has been firing on all cylinders, there has been significant pressure on growth stocks in 2022 as investors appear to be more sensitive to valuation risk. CrowdStrike is among the growth stocks that may simply be trading at too high a price tag.
Source Fool.com
