CrowdStrike May Be a Once-in-a-Decade Opportunity to Supercharge Your Portfolio
Shares of CrowdStrike (NASDAQ: CRWD) opened 6% higher on March 8, the day after the company released its quarterly report that beat analysts' estimates for revenue and earnings. But between the Federal Reserve chairman suggesting that interest rates could go higher than the market is expecting and the collapse of Silicon Valley Bank (owned by SVB Financial) near the end of the week, the stock has dropped 3% from the price it traded at before its earnings results.
Investors are rightly concerned because a bank failure is never good for the economy. And with the Federal Reserve seemingly determined to raise interest rates much higher, things could get much worse before getting better. So far, CrowdStrike has yet to release information about having deposits at risk at the bank. Still, because many tech and healthcare companies had deposits at Silicon Valley Bank, the potential loss of that cash could have knock-on effects that result in less spending on CrowdStrike's Falcon platform.
The stock could fall further depending on how the government handles the shutdown of SVB and how much the Federal Reserve decides to raise interest rates. So, should you buy the dip in CrowdStrike's stock?
Source Fool.com
