Why the Outlook for CrowdStrike's Business Remains Positive but for Its Share Prices, Less So
Fast-growing cybersecurity stock CrowdStrike Holdings (NASDAQ: CRWD) is now underwater -- at least from its public debut price from the summer of 2019. Shares did surge more than 70% from their IPO pricing on the first day of trading and continued to race higher from there as investors were attracted to the triple-digit revenue growth disclosed in company's prospectus. But reality has since set in, and shares are currently at $48 and change, and most investors who bought in post-IPO are sitting on an investment loss.
Though results have begun to moderate, revenues still grew at an 88% clip (98% for subscription-based revenue) during the third quarter of fiscal 2020 (three months ended Oct. 31, 2019) -- again easily topping management's conservative guidance. The outlook remains positive, but valuation remains high in spite of shares coming back down to earth. Barring sales picking up steam again, CrowdStrike shares could have a couple more tough quarters left before resuming their rise.
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Source Fool.com
