Crowd Strike (NASDAQ: CRWD) The stock saw another big sell-off in trading this week. The company’s stock price ended this week’s trading down 16% from last week’s market close, according to data from S&P Global Market Intelligence.
Last Friday, CrowdStrike was at the center of a major IT outage — an event that led to a massive selloff in the company’s shares. The cybersecurity company’s valuation continued to slide this week as investors and analysts assessed the potential consequences of a major system failure on the business.
CrowdStrike’s update on major IT outage doesn’t reassure investors
Due to a bug in the automatic update that CrowdStrike rolled out last Friday, millions of computers using MicrosoftCrowdStrike’s Windows operating system was shut down last week. CrowdStrike has emerged as a leading provider of endpoint protection and other related services. Cyber Security ServicesBut last week’s massive IT meltdown has raised questions about the company’s systems, performance expectations and valuation.
CEO George Kurtz provided an update on Thursday saying that 97% of Windows sensors that were shut down during the outage the previous week were now working again. Unfortunately, the recovery has done little to calm concerns among investors and analysts.
Analysts Lower Price Targets on CrowdStrike
Wednesday, City Group CrowdStrike issued a note maintaining a buy rating on the company’s stock. On the other hand, lead analyst Fatima Bolani lowered the company’s one-year price target to $345 per share from $425 per share. If CrowdStrike hits that target, it would represent an upside of about 35% from the company’s current share price. But Bolani also highlighted the risk of CrowdStrike falling to $170 per share.
In a memo published on Thursday, Barclays Barclays has cut its one-year price target on CrowdStrike from $400 per share to $285 per share. Based on the cybersecurity company’s stock price at market close today, that implies an upside potential of about 11%. While Barclays maintained an Overweight rating on CrowdStrike stock, the dramatic downward revision to the stock’s price target suggests that the disruption will continue to present significant headwinds to the valuation.
In an optimistic scenario, Barclays sees CrowdStrike’s share price rising back to $310 over the next year. But the firm also sees a risk that the share price could fall to $210.
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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Keith Noonan The Motley Fool has positions in CrowdStrike. The Motley Fool has positions in and recommends CrowdStrike and Microsoft. The Motley Fool recommends Barclays Plc and recommends the following options: Buy $395 January 2026 calls on Microsoft and sell $405 January 2026 calls on Microsoft. The Motley Fool has Disclosure Policy.
Why CrowdStrike Stock Dropped Again This Week Originally posted by The Motley Fool
