Why CrowdStrike Stock Just Jumped 5%
Shares of cybersecurity specialist CrowdStrike Holdings (NASDAQ: CRWD) are up a strong 5.4% in 11:05 a.m. EDT trading. The gain follows the company's announcement last night that it has completed its acquisition of conditional access technology provider Preempt Security.
CrowdStrike had already announced that it would be making this acquisition -- just last week, in fact. At the time, the company explained it was paying $96 million and estimated that the deal would close before the end of its fiscal third quarter 2021 (which ends Oct. 31). CrowdStrike promised that bringing Preempt into the fold would help it to "provide a modern Zero Trust security architecture and threat protection to keep organizations' users, endpoints, and data safe from modern attacks, without compromising productivity or the user experience."
None of this has changed in the past week, so why are investors bidding up CrowdStrike on a mere confirmation of the news?
Source Fool.com
