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George Kurtz, chief executive officer of CrowdStrike Inc., speaks during the Montgomery Summit in Santa Monica, California, U.S., on Wednesday, March 4, 2020. The Montgomery Summit gathers entrepreneurs, investors, and executives to discover the most important innovations in business and technology.

Patrick T. Fallon | Bloomberg | Getty Images

CrowdStrike shares fell about 19% on Wednesday morning, a day after the cybersecurity company reported third-quarter results that said new revenue growth was weaker than expected.

CrowdStrike reported annual recurring revenue (ARR) of $2.34 billion, up 54% year over year. More than $198 million was net new ARR added in the quarter, which ended Oct. 31. The company also added 1,460 net new subscription customers for the quarter.

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CEO George Kurtz said in a release that the company’s total net new ARR was below expectations. Last year, CrowdStrike’s ARR increased by more than 67% in the third quarter, and the company added 1,607 net new subscription customers for that same period.

Analysts at Morgan Stanley also said CrowdStrike’s results were “disappointing,” but they said estimates did not reflect the current macroeconomic environment. They encouraged investors to buy the sell-off in a Wednesday note. 

“With forward estimates appropriately level set, we think this pullback provides an attractive entry point to accumulate shares in a premier SaaS security franchise,” they said.

An analyst at Stifel said CrowdStrike’s results were “disappointing” and downgraded the stock from buy to hold.  

“Although management’s preliminary CY24 outlook was below consensus, we believe it could take a few quarters until expectations are fully de-risked, and as a result, we lower our rating to Hold,” they wrote in a Tuesday note. 

CrowdStrike’s stock is down more than 32% this year, and the analyst expects further downside ahead after the company issued light guidance. The analyst’s $120 price target, slashed from $225, is about 13% below where shares closed Tuesday.

Needham analysts said they remain a “convinced buyer” of CrowdStrike for the long term.

They believe the company’s slower guidance opened a “can of worms” about bear market concerns, but they said they think most of those concerns are “misplaced.”

“We suspect CRWD will find itself in the penalty box into year-end despite its strong growth, operating leverage and Cash Flow as investors worry about lengthening deal cycle time and potential for further deceleration,” they wrote Wednesday. “We remain positive on CRWD.”

—CNBC’s Michael Bloom contributed to this report. 

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CNBC Daily Open: Too early to fret about tech pullback?

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CNBC Daily Open: Too early to fret about tech pullback?

Traders work on the floor of the New York Stock Exchange (NYSE) on November 07, 2025 in New York City.

Spencer Platt | Getty Images

November is historically the best month for the S&P 500, which gains an average of 1.8% during the period, according to the Stock Trader’s Almanac.

But the first full trading week of the month saw stocks caught in November rains.

The S&P 500 and Dow Jones Industrial Average each lost more than 1%, while the Nasdaq Composite shed around 3% — that’s its largest weekly loss since the tech-heavy index slumped 10% in the week ended April 4.

A few months ago, tariffs were the shadows that stalked stocks. Now, it’s fears that artificial intelligence-related stocks are trading at prices disconnected from what the firms are actually worth.

“You’ve got trillions of dollars tied up in seven stocks, for example. So, it’s inevitable, with that kind of concentration, that there will be a worry about, ‘You know, when will this bubble burst?‘” CEO of DBS, Southeast Asia’s largest bank, Tan Su Shan told CNBC.

Goldman Sachs’ CEO David Solomon also thinks choppy waters might be ahead.

“It’s likely there’ll be a 10 to 20% drawdown in equity markets sometime in the next 12 to 24 months,” Solomon said Tuesday at the Global Financial Leaders’ Investment Summit in Hong Kong.

That said, a pullback isn’t necessarily bad for stocks. It could even present “buying opportunities” for investors, according to Glen Smith, chief investment officer at GDS Wealth Management.

After all, earnings have been “reassuring” despite worries about tech stocks’ high valuations, Kiran Ganesh, multi-asset strategist at UBS, told CNBC. That means the rain might not last and the rally could find a way to run a little longer.

— CNBC’s Lee Ying Shan, Hugh Leask and Lim Hui Jie contributed to this report.

What you need to know today

Major U.S. index were mixed Friday stateside. The S&P 500 and Dow Jones Industrial Average inched up more than 0.1%, but the Nasdaq Composite closed 0.21% lower. The pan-European Stoxx 600 lost 0.55%. U.S. futures rose Sunday evening stateside.

China consumer prices pick up in October. The consumer price index, released Sunday, showed a 0.2% growth year on year. It beats analysts’ expectations of zero growth and is the first month since June that prices rose.

U.S. government on track to end shutdown. Enough Democratic senators had agreed to vote for a deal that would fund the U.S. government through the end of January, a person familiar with the deal told CNBC.

Another missed jobs report. The ongoing U.S. government shutdown — which is now the longest ever — means the Bureau of Labor Statistics couldn’t release its monthly employment data. Here’s what economists would have expected the report to show.

[PRO] Stocks that could bounce after sell-off. Using CNBC Pro’s stock screener tool, we found several names that are oversold, according to their 14-day relative strength index. This implies they could be due for a recovery in prices.

And finally…

Fluxfactory | E+ | Getty Images

A global wealth boom is fueling a rise in family office imposters

Fundraisers and fraudsters are presenting themselves as family office representatives, seeking to dupe gullible investors — and then there are also imposters who are in it just for an “ego boost,” several industry veterans told CNBC.

An information vacuum seems to have encouraged imposters. In many markets, genuine single family offices, or SFOs, are exempt from registering so long as they manage only family money. That privacy norm often makes verification hard, said industry experts.

Lee Ying Shan

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Week in review: The Nasdaq’s worst week since April, three trades, and earnings

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Week in review: The Nasdaq's worst week since April, three trades, and earnings

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Too early to bet against AI trade, State Street suggests 

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Too early to bet against AI trade, State Street suggests 

Momentum and private assets: The trends driving ETFs to record inflows

State Street is reiterating its bullish stance on the artificial intelligence trade despite the Nasdaq’s worst week since April.

Chief Business Officer Anna Paglia said momentum stocks still have legs because investors are reluctant to step away from the growth story that’s driven gains all year.

“How would you not want to participate in the growth of AI technology? Everybody has been waiting for the cycle to change from growth to value. I don’t think it’s happening just yet because of the momentum,” Paglia told CNBC’s “ETF Edge” earlier this week. “I don’t think the rebalancing trade is going to happen until we see a signal from the market indicating a slowdown in these big trends.”

Paglia, who has spent 25 years in the exchange-traded funds industry, sees a higher likelihood that the space will cool off early next year.

“There will be much more focus about the diversification,” she said.

Her firm manages several ETFs with exposure to the technology sector, including the SPDR NYSE Technology ETF, which has gained 38% so far this year as of Friday’s close.

The fund, however, pulled back more than 4% over the past week as investors took profits in AI-linked names. The fund’s second top holding as of Friday’s close is Palantir Technologies, according to State Street’s website. Its stock tumbled more than 11% this week after the company’s earnings report on Monday.

Despite the decline, Paglia reaffirmed her bullish tech view in a statement to CNBC later in the week.

Meanwhile, Todd Rosenbluth suggests a rotation is already starting to grip the market. He points to a renewed appetite for health-care stocks.

“The Health Care Select Sector SPDR Fund… which has been out of favor for much of the year, started a return to favor in October,” the firm’s head of research said in the same interview. “Health care tends to be a more defensive sector, so we’re watching to see if people continue to gravitate towards that as a way of diversifying away from some of those sectors like technology.”

The Health Care Select Sector SPDR Fund, which has been underperforming technology sector this year, is up 5% since Oct. 1. It was also the second-best performing S&P 500 group this week.

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