Track market-moving stories before they get noisy

CrowdStrike's CEO just warned that newly discovered flaws in the software powering most of the internet will trigger a wave of break-ins, and the stock market rewarded that forecast immediately. Whether investors are buying a real threat or a vendor's…

On Friday, October 23, 2026, CrowdStrike (NASDAQ:CRWD | CRWD Price Prediction) chief executive George Kurtz gave a television interview. He said newly disclosed flaws in PHP, the programming language behind nearly 70% of websites, will lead to a surge of break-ins. “You’re going to see a lot of breaches happening in the coming months from this,” he said, adding, “This is part of the long tail of these vulnerabilities that we see.”

Investors read the warning as a sales forecast. CrowdStrike rose $19.63, or 8.25%, to $257.57, valuing the company at $264.30 billion. Palo Alto Networks (NASDAQ:PANW) gained $25.63, or 7.22%, to $380.55.

What the PHP Flaws Actually Put at Risk
The federal cyber agency’s October 21 alert covered two critical PHP flaws, each rated 9.2 on the CVSS severity scale (a 0 to 10 danger score). Either one lets an attacker who has not logged in run code remotely on a web server, and PHP also disclosed a third remote-code-execution flaw.

The agency told operators to “Apply the patch immediately, prioritizing internet-facing systems” and to take unpatchable systems offline. Its October 23 revision reported no observed exploitation in the wild, though millions of hacking attempts followed while websites worldwide went offline as operators struggled, and SoftBank suspended its emergency alert system for mobile users.

Kurtz said tens of millions of servers are exposed and that AI-powered attacks CrowdStrike tracked doubled every month from July through September, while he put no figure on damage and named no company at risk.

Who Gets Paid When a Server Flaw Spreads
A flaw turns into revenue through emergency patching, incident response, managed detection and, eventually, platform consolidation. A long tail spreads that demand over months, so booking timing is uncertain.

CrowdStrike protects endpoints and cloud workloads, the layer closest to a compromised server, and sells incident response. Professional services revenue hit a record $71 million last quarter, a small slice of $1.47 billion in total revenue.

Palo Alto’s strength is the network. Chief executive Nikesh Arora said its firewalls can push protections for new flaws in under four hours, versus a 55-day standard patch time, which suits attacks arriving from the internet.

Okta (NASDAQ:OKTA) rose 5.82%, and Datadog (NASDAQ:DDOG) gained 4.62%, as traders bought shares across the sector.

Why a Vendor’s Warning Deserves a Discount
A security CEO forecasting breaches has a commercial interest in that forecast. Arora made the same pitch in September, predicting “some major breaches in the coming years” and calling that “a tailwind for the industry as a whole.”

Much of that story is likely priced in, because CrowdStrike is up 119.79% year to date and Palo Alto 106.6%, although CrowdStrike still closed about 10% below its $286.99 52-week high.

Palo Alto’s intraday high of $381.49 sat about 12% under its $432.33 peak. If the attempts don’t turn into confirmed breaches, investors are likely to discount further warnings, and the one-day gains may fade.

What Could Move CrowdStrike Before Its December Report
CrowdStrike’s one-day spike ran ahead of the evidence. The business is strong, with ARR of $5.84 billion growing 25%, but a forecast added 8.25% without one confirmed breach.

A TV investing club reduced its stake to 4.25% of its portfolio the same day, locking in about 187% in profits.

Palo Alto’s network layer fits server-side attacks, and it reports first, on Wednesday, November 18. It guided to revenue of $3.300 billion to $3.310 billion, non-GAAP EPS of $0.96 to $0.98, and Next-Generation Security ARR of $9.54 billion to $9.56 billion.

The trigger is a federal alert revision confirming exploitation, or PHP-linked breach disclosures, before CrowdStrike’s estimated December 1 report. Without either, CrowdStrike is likely to give back much of the $19.63.

Contact [email protected] for any questions or corrections.

CrowdStrike founder and CEO George Kurtz joins ‘Squawk on the Street' to discuss the risks posed by PHP vulnerabilities, the rise in the frequency of AI attacks, and more.

As the digital economy grows, choosing between Arista Networks (ANET +1.73%) and CrowdStrike (CRWD +5.26%) requires weighing hardware efficiency against software-based protection. Both companies sit at the center of critical enterprise infrastructure trends.

Arista Networks provides the physical and software backbone for massive data centers, while CrowdStrike secures those same environments against evolving cyber threats. This comparison evaluates their growth, financial health, and valuation to help you decide which stock is a better buy today.

The case for Arista NetworksArista Networks provides high-speed networking solutions that manage data flow across massive cloud environments. Its primary customers include "cloud titans" and specialized providers building out the next-generation artificial intelligence infrastructure. The company is heavily reliant on Broadcom as its primary merchant silicon vendor for switching chips. Customer concentration like this adds a layer of risk to the business, as a few massive buyers drive the majority of its volume.

On a trailing-12-month basis (TTM) through the second quarter of 2026, Arista's revenue reached $10.5 billion. This represented a growth rate of approximately 33% year over year. Net income grew to $4 billion, which resulted in a net margin of about 38%. This figure measures how much of every dollar in sales remains as profit after all expenses, showing high efficiency in the networking hardware space.

As of its June 2026 balance sheet, the current ratio stands at approximately 3.0x. A current ratio measures a company's ability to cover its short-term debts with its short-term assets, with a value above 1.0 typically suggesting financial stability. The debt-to-equity ratio is 0.0x, indicating it carries virtually no debt relative to its shareholders' equity.

Trailing free cash flow was close to $5.1 billion. This is the cash remaining after a business pays for its operating costs and equipment investments.

The case for CrowdStrikeCrowdStrike provides the Falcon platform, which is a comprehensive suite of cloud-based cybersecurity modules for modern enterprises. These modules cover identity protection and threat intelligence, helping companies consolidate their security tools within the tech stocks landscape. The company primarily sells its services through a subscription model, providing predictable recurring revenue. It relies on third-party cloud infrastructure providers such as Amazon to host and operate its platform.

Its TTM revenue through the July 2026 fiscal quarter reached nearly $5.4 billion. This was an increase of approximately 24% year over year. Net income was roughly $38 million over the last year, resulting in a net margin of less than 1%, although it continues to generate substantial free cash flow.

As of its July 2026 balance sheet, the current ratio is approximately 1.6x. This demonstrates a solid ability to meet near-term obligations using liquid assets. CrowdStrike reported a debt-to-equity ratio of approximately 0.2x, which measures the relationship between its total debt and its shareholders' equity.

TTM free cash flow was close to $1.6 billion. Note that stock-based compensation accounted for roughly 68% of operating cash flow, inflating reported cash generation, since SBC is a non-cash expense added back in the cash flow statement.

Risk profile comparisonArista Networks faces significant revenue concentration from a limited number of large customers, which can cause material period-to-period fluctuations. The company also relies on a sole or limited source for critical components, specifically merchant silicon, which poses supply chain risks. Increased competition and industry consolidation threaten its market share. This includes competition from larger vendors such as Hewlett Packard Enterprise and smaller, specialized players such as Extreme Networks.

CrowdStrike is currently involved in various legal proceedings and must manage potential cybersecurity incidents affecting its own systems. It must continuously innovate to address evolving security threats in a crowded market. Rivals like Microsoft also provide security solutions that compete directly for the same enterprise budgets.

Valuation comparisonArista Networks currently trades at a lower valuation multiple than CrowdStrike, based on both earnings estimates and historical sales metrics.

MetricArista NetworksCrowdStrikeForward P/E44.5x182.0xP/S ratio21.9x43.3xValuation metrics include those sourced from Financial Modeling Prep (FMP) and may differ from those of other data providers.

The Forward P/E compares the stock price to future earnings estimates, while the P/S ratio measures the stock price relative to sales over the past twelve months. Both metrics suggest that investors are paying a significant premium for the future growth potential of these companies.

Arista Networks has emerged as a leading supplier of high-speed switching gear. At the same time, CrowdStrike just reported its best quarter in company history, driven by surging demand for AI security solutions. Both face competition, although CrowdStrike may be more in control of its market than Arista. This is why the cybersecurity leader trades at a higher valuation, and it's the stock I would buy now to hold for long-term growth.

CrowdStrike expects annualized revenue to nearly double to $10 billion by 2030. That could support compound annual revenue growth of close to 20%. It faces competition from Microsoft and potential threats from leading AI frontier labs, which could develop their own security solutions. However, CrowdStrike believes its data and the context built around it give it a competitive advantage that is hard to replicate.

Arista is a leader in switching, but it faces growing competition from Nvidia's networking solutions, which are scaling rapidly. Nvidia's compute and networking revenue grew 114% year over year in the fiscal second quarter, reaching $88 billion.

Both stocks trade at high price-to-earnings ratios relative to earnings growth. I see cybersecurity becoming increasingly necessary as AI advances. Investors are sensing this opportunity, with the stock soaring to new highs in 2026, but there are more gains in store for a patient investor who can hold for the next decade or so.

Key Takeaways CRWD's endpoint business accelerated for the fourth consecutive quarter, driven by rising AI agent adoption.CRWD reports Claude usage rose over 400%, while custom agent usage increased more than 100%. CRWD could gain customers as enterprises replace legacy antivirus tools that may miss rogue AI agents.
CrowdStrike (CRWD - Free Report) is seeing stronger demand for endpoint security as companies expand their use of artificial intelligence (AI) tools and agents. In the second quarter of fiscal 2027, CrowdStrike's endpoint business accelerated for the fourth consecutive quarter. The company said the increase was driven by the growing use of AI on endpoints, including tools such as Claude, Codex and custom agentic applications.

AI usage on endpoints is growing quickly. CrowdStrike said Claude usage across a sample of its customers increased more than 400% in recent months, while custom agent usage grew over 100%. As these tools gain wider use, companies are facing new risks, including code exploitation, data leakage and identity compromise. This is increasing the need to secure AI activity directly on endpoints.

CrowdStrike is also benefiting from customers replacing older endpoint security products. A large financial services firm replaced a next-generation endpoint detection and response product in an eight-figure Falcon Flex deal covering more than 100 entities and hundreds of thousands of endpoints. The customer selected CrowdStrike’s platform for detection coverage, ease of deployment and lower endpoint impact.

There is still room for further endpoint adoption. Management said about half of the market continues to use legacy antivirus products, which may not be designed to identify rogue AI agents or shadow AI. As enterprises move more AI workloads to employee devices, CrowdStrike could have more opportunities to win new customers and expand within its existing base. This could keep endpoint demand growing as AI adoption increases.

The Zacks Consensus Estimate for fiscal 2027 and 2028 indicates revenue growth of 24.8% and 22.6%, respectively.

How Competitors Fare Against CRWDCompetitors like Palo Alto Networks (PANW - Free Report) and SentinelOne (S - Free Report) are also gaining ground through platform expansion and AI innovation.

PANW is expanding its endpoint security capabilities as AI tools and autonomous agents become more common on employee devices. Following its acquisition of Koi, the company is developing an agentic endpoint security strategy to monitor AI activity and prevent unauthorized actions. PANW aims to provide visibility from the initial prompt to the final action and block threats as they occur. The company reported more than 100 customer wins in the fourth quarter of fiscal 2026 for its agentic endpoint strategy, representing a 2.5-fold increase since completing the Koi integration.

SentinelOne is also targeting the endpoint security market through its Singularity Endpoint platform, which provides endpoint detection and response (EDR) with automated threat detection and remediation. The company sees an opportunity to replace legacy antivirus products, noting that nearly half of the sector still relies on these older tools. In the second quarter of fiscal 2027, a major government agency selected Singularity EDR after evaluating its real-time detection, autonomous response and total cost of ownership. SentinelOne also reported a deal with an international retailer that replaced a legacy endpoint vendor while expanding its use of the Singularity platform.

CRWD’s Price Performance, Valuation & EstimatesShares of CrowdStrike have surged 94% in the year-to-date period compared with the Zacks Security industry’s appreciation of 83.8%.

CRWD’s YTD Price Return Performance

Image Source: Zacks Investment Research

From a valuation standpoint, CrowdStrike trades at a forward price-to-sales ratio of 33.41, significantly higher than the industry’s average of 17.97. The Zacks Value Score of F suggests that CRWD stock is overvalued.

CRWD’s Forward 12-Month P/S Ratio

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CrowdStrike’s fiscal 2027 and 2028 earnings indicates year-over-year growth of 35.5% and 28.2%, respectively. The estimates for fiscal 2027 and 2028 have remained unchanged over the past 30 days.

Image Source: Zacks Investment Research

CrowdStrike currently has a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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In the artificial intelligence software space, Palantir Technologies (PLTR +4.37%) and Snowflake (SNOW +2.77%) have given investors plenty of reasons to be excited.

Palantir has found success helping businesses and government agencies use AI to analyze information and make decisions. Data warehousing giant Snowflake, meanwhile, has benefited from growing demand for its cloud-based data platform, which allows companies to organize and use the enormous amounts of information that AI applications require.

But there's another software company that could have an even bigger AI-driven opportunity in 2027 -- even though it's not primarily in what you'd think of as an AI business.

CrowdStrike (CRWD +0.31%) is the second-largest cybersecurity company, providing numerous companies with protection from digital threats. And as AI becomes increasingly used, the need for cybersecurity that can cope with AI-powered attacks could become one of the biggest growth opportunities in the technology industry.

Here's why CrowdStrike deserves a closer look.

Image source: CrowdStrike.

AI is creating an enormous cybersecurity problem One of the most interesting developments in artificial intelligence this year has been the introduction of Anthropic's Claude Mythos model.

This powerful AI system can identify software vulnerabilities that hackers might exploit to gain access to computer networks. That's useful for companies trying to strengthen their defenses, but it also raises an uncomfortable question: What happens when criminals get access to similarly powerful tools?

Anthropic's Project Glasswing was created to help organizations identify and repair their vulnerabilities before attackers can exploit them. The company has also expanded access to its advanced cybersecurity models through a verification program for qualified security professionals.

CrowdStrike is a founding member of Project Glasswing, alongside technology giants including Nvidia, Microsoft, and Amazon.

And it has been expanding its relationship with Anthropic. In September, CrowdStrike announced that its Falcon security platform would become available through the Anthropic Claude Marketplace. In October, it joined Anthropic's Critical Infrastructure Defense Program.

I think that's important because CrowdStrike isn't just waiting for AI-related cybersecurity spending to increase. It's working directly with companies that are developing some of the most advanced AI technology.

CRWD CrowdStrike$228.10+$0.71 (+0.31%)

NASDAQ · As of 4:00 PM ET 10/19/26

CrowdStrike's platform positions it to capitalize on a growing need CrowdStrike's cloud-native Falcon platform helps businesses protect computers, servers, cloud applications, and other systems from cyberattacks. Falcon's software agents monitor device activity, while CrowdStrike's cloud-based technology analyzes data streams to identify suspicious behavior. That allows businesses and organizations to detect and respond to threats efficiently.

And CrowdStrike has been expanding what Falcon can do. The company offers security services covering identity protection, cloud workloads, threat intelligence, and AI applications. Customers can add these capabilities through additional subscription modules, giving CrowdStrike opportunities to increase the revenue it's deriving from existing relationships.

That's particularly valuable as businesses begin deploying AI agents that can access sensitive information and perform tasks without constant human supervision.

CrowdStrike has already introduced technology designed to monitor and control access for those AI agents.

The opportunity isn't limited to protecting companies from hackers using AI. Businesses also need to ensure their AI systems aren't creating new security problems.

CrowdStrike's growth is already accelerating CrowdStrike delivered solid results in its fiscal second quarter, which ended July 31. Revenue rose 26% year over year to $1.47 billion. Annual recurring revenue (ARR), a measure of subscription revenue expected over a year, increased 25% to $5.84 billion.

The company also added a record $333 million in net new ARR during the quarter, a 51% increase from the previous year. Management raised its full-year net new ARR growth guidance to 34% at the midpoint, up 6.3 percentage points from its previous outlook.

And CrowdStrike is generating cash. Free cash flow reached $377 million in fiscal Q2, compared with $284 million a year earlier.

These figures provide evidence that demand for CrowdStrike's products is growing. They don't establish how much additional business Anthropic's technology will generate, but the company already has a substantial subscription business to build upon.

Is CrowdStrike the better AI software investment? CrowdStrike stock is having a better year than either Snowflake or Palantir -- it's up 94% so far in 2026. I like CrowdStrike because it may benefit from the increasing adoption of AI regardless of which software companies emerge as the biggest winners. Palantir and Snowflake need businesses to continue adopting their particular platforms for their operations. But CrowdStrike serves a different requirement -- it protects the systems and information that those businesses depend upon.

CRWD data by YCharts.

The company has a growing subscription business, expanding partnerships with major AI developers, and a platform that addresses security needs that could become more demanding as AI technology improves.

Palantir and Snowflake are helping companies put AI to work. CrowdStrike is helping make sure those companies can do it safely.

CrowdStrike (CRWD -7.03%) has been an incredible performer in 2026. The stock has nearly doubled this year, providing excellent returns. Can it sustain its momentum?

If you invest $5,000 in CrowdStrike now, what could that be worth by the end of 2028? The answer may be a bit shocking.

Image source: Getty Images.

CrowdStrike's cybersecurity solutions have never been more important
CrowdStrike is a cybersecurity company. It offers several products to provide a complete cybersecurity solution for its clients, and 51% of clients use six or more products. However, it all centers on endpoint protection, which is a way to prevent network access points from being used as attack vectors.

CRWD CrowdStrike$227.39-$17.18 (-7.03%)

NASDAQ · As of 4:00 PM ET 10/16/26

CrowdStrike uses AI to monitor an endpoint and shut down access if anything out of the ordinary is detected. When today's cybercriminals are assisted by AI, they become more potent. That's why proper cybersecurity platforms, like CrowdStrike, have become so important. The market recognizes this, which is why CrowdStrike's stock has skyrocketed this year.

However, there may be a bit of a problem. While cybersecurity adoption has certainly ramped up, CrowdStrike's revenue growth rate has remained steady over the past year.

CRWD Revenue (Quarterly YOY Growth) data by YCharts.

A 26% revenue growth rate is slower than many of the major AI giants, yet CrowdStrike's stock is outperforming them. Wall Street analysts don't expect anything out of the ordinary for the rest of the year, as they estimate 24% revenue growth in the third and fourth quarters. Next year, they expect 23% revenue growth.

Growth rates like that, combined with a stock that has doubled this year, start to raise red flags for me as an investor. The stock may have gotten ahead of itself, and it could be getting a bit pricey. One quick look at its price-to-sales (P/S) ratio (because it isn't profitable) confirms this.

CRWD P/S Ratio data by YCharts.

CrowdStrike is now the most expensive it has been since 2021. That's a huge red flag, as 2022 saw many software stocks, like CrowdStrike, crater because expectations were too high for the growth they were delivering. History may be repeating itself, as CrowdStrike's growth is matching its valuation.

Although I'm a CrowdStrike shareholder, now may be the time to trim and take some gains, as the stock has gotten very expensive. By 2028, CrowdStrike will have grown in some of its valuation, but not all. As a result, a $5,000 investment now could be worth less than it is today, based solely on a sky-high price tag. There are many other AI stocks with much better valuations and faster growth, and investors should turn their focus there.

Shares in cybersecurity company CrowdStrike (CRWD.O) have more than tripled from this year's low to last week's record high, but bulls should be warned: there are troubling signs on the charts, technical analysis indicates.

Click here for a detailed technical analysis chart.

Technical analysis ​uses past price action to map out future moves. One thing in particular chart watchers focus on is identifying ‌price points that might provide support in a falling market — effectively a floor for the stock — and resistance, or something that will function as a ceiling when it’s rising.

Many analysts also rely on candlestick charts, which show the evolving balance between buyers and sellers by how they display key prices such as the open, ​high, low and close for a day, week or other period in one bar. Over time, market watchers have recognized ​that certain price patterns on those candlestick charts have foreshadowed a pause or end of a rally.

One of ⁠these patterns showed up on CrowdStrike’s weekly chart. Called a doji, this formation occurs when a stock closes near where it opened during ​a certain period and the price retreats from the highs and lows. Most often a doji signals market indecision, but it is also ​a warning of potential losses after a rally — which places added emphasis on what the share price does next.

The bad news for CrowdStrike bulls is this doji — which appeared on the stock’s chart when it hit a record high of $286.99 last week, according to data supplied by LSEG — was followed by falling prices ​this week. Weekly charts are important because they help confirm whether a trend is developing over time rather than a short-term blip.

When charts ​flash warning signs like this, analysts seek confirmation, particularly in gauges of market momentum. Two widely used tools are the weekly Relative Strength Index and the ‌Moving Average ⁠Convergence Divergence. Both are pointing lower.

If CrowdStrike extends its retreat, now is the time technical analysts will want to know where to find support levels. One way they can do that is by defining the parameters of the stock’s rally. In other words, since stocks rarely move in a straight line, understanding the scale of pullbacks during a rally can help predict where they might stop. A widely used tool ​for doing this is a trend ​channel. Another tool, Bollinger Bands — ⁠an average of the stock price sandwiched between two lines — also helps.

Currently, these are suggesting initial targets for losses could be around $215, followed by $200 and then $180.

However, if bulls can push the stock back above the $262 ​to $263 area, the negative outlook would probably dissipate, while a rise beyond the $276 to $277 zone could ​signal a resumption of ⁠the upward trend.

CrowdStrike did not immediately respond to an email requesting comment.

What the chart shows:

CrowdStrike rallied from this year's low, then formed a doji after its $286.99 record high

A fall could target $215, then $200 and $180

A rise above $262 to $263 would ease the negative outlook, and a move above $276 to $277 could signal the ⁠uptrend is ​resuming

(Mapping the Market is a daily column written by Reuters journalists. The commentary is ​based on a technical analysis of financial charts, which helps assess the likelihood of future price moves but does not guarantee the outcome. The column does not constitute ​investment advice or trading recommendations. )

CrowdStrike Holdings (CRWD - Free Report) closed the most recent trading day at $248.87, moving -4.73% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 1.11%. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 1.88%.

Prior to today's trading, shares of the cloud-based security company had gained 7.72% outpaced the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.06%.

Analysts and investors alike will be keeping a close eye on the performance of CrowdStrike Holdings in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.31, signifying a 29.17% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.53 billion, indicating a 23.8% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.26 per share and a revenue of $6 billion, representing changes of +35.48% and +24.64%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for CrowdStrike Holdings. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, CrowdStrike Holdings holds a Zacks Rank of #5 (Strong Sell).

Looking at valuation, CrowdStrike Holdings is presently trading at a Forward P/E ratio of 207.7. This signifies a premium in comparison to the average Forward P/E of 57.68 for its industry.

One should further note that CRWD currently holds a PEG ratio of 7.77. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CRWD's industry had an average PEG ratio of 3.2 as of yesterday's close.

The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Shares of CrowdStrike Holdings (CRWD -3.61%) were trading sharply lower on Wednesday, falling as much as 4.9% in early trading and were still down 3% as of 11:50 a.m. ET.

The catalyst that sent the cybersecurity stock lower was a report that the company could face a new threat from artificial intelligence (AI).

Image source: The Motley Fool.

Budding competition?Reports surfaced late on Tuesday that AI start-up OpenAI was in early discussions to acquire cybersecurity and security research company Trail of Bits, according to a report that first appeared in The Information. The software security company developed a following for its work in finding and securing vulnerabilities in open-source software.

The report suggested that this might be a first step by OpenAI in developing a competitive cybersecurity business.

This isn't the first time the two companies have been linked. Earlier this year, OpenAI partnered with Trail of Bits in the pair's Patch the Planet initiative, which sought to strengthen open-source software by identifying and securing exploitable vulnerabilities. During the first week, the collaboration uncovered hundreds of vulnerabilities and security issues and developed patches to secure them.

Premium Feature

Moneyball Superscore

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Today's Change

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SaaSpocalypse, part 2Today’s stock decline bears an uncanny resemblance to the rout that hit software-as-a-service (SaaS) stocks earlier this year on fears that AI would make them obsolete. Since then, many of these same stocks have rebounded and hit new heights as investors have come to understand that reality is much more complicated and that most of these offerings aren't so easily replicated.

Moreover, one of Wall Street's finest expressed his support for CrowdStrike in the wake of the report. BTIG analyst Gray Powell maintained a buy rating and raised his price target to $312 from $245 -- suggesting potential upside of 19% compared to Tuesday's closing price. The analyst suggested that investors are underestimating the pace of AI-based cybersecurity adoption and the potential to drive the company's long-term growth.

CrowdStrike stock is up 115% so far this year, resulting in a spike in its valuation. At 201 times forward earnings and 157 times next year's expected earnings, any bit of uncertainty could sink the stock. That said, since its IPO in mid-2019, CrowdStrike has gained 1,640%, underscoring why it deserves a premium.

Danny Vena, CPA has positions in CrowdStrike. The Motley Fool has positions in and recommends CrowdStrike. The Motley Fool has a disclosure policy.

Key Takeaways CRWD sees rising platform adoption, with 51% of subscription customers using six or more Falcon modules in Q2.CRWD added over 935 Falcon Flex accounts, while Flex new-logo ARR contributed 34% of net new ARR. CRWD's Q2 FY27 revenues rose 26% to $1.47 billion, while record net new ARR climbed 51% to $333 million.
CrowdStrike (CRWD - Free Report) is seeing stronger customer demand for platform consolidation as enterprises look to reduce the number of security vendors they use. In the second quarter of fiscal 2027, 51% of subscription customers had adopted six or more CrowdStrike modules, while 35% had adopted seven or more and 26% had adopted eight or more. Management stated that its unified platform strategy is helping customers consolidate security products on the Falcon platform.

Falcon Flex is supporting this platform consolidation trend by allowing customers to buy multiple products under a single subscription model. CrowdStrike added more than 935 Flex accounts in the second quarter, while Flex new-logo ARR contributed 34% of net new ARR. Customers moving from standard subscriptions to Flex also generated an average ending ARR uplift of more than 40%. These trends show that platform consolidation can help CrowdStrike increase spending from both new and existing customers.

CrowdStrike is also using platform consolidation to replace multiple legacy security products at the same time. A key customer win in the second quarter includes a European automotive manufacturer, which signed an eight-figure Falcon Flex agreement to replace its existing next-generation endpoint detection and response product, legacy SIEM and vulnerability management tool. In another deal, a major American power provider replaced a legacy SIEM with CrowdStrike's Next-Gen SIEM. Such wins allow the company to expand its presence across several parts of a customer's security environment.

The impact of CRWD’s unified platform strategy is visible in the company’s financial results. Second-quarter revenues grew 26% year over year to $1.47 billion, while ending ARR reached $5.84 billion, up more than 25%. Net new ARR rose 51% to a record $333 million, and management raised its fiscal 2027 net new ARR growth outlook to 34%. With customers adding more modules and replacing multiple security tools with Falcon, continued platform consolidation could help CrowdStrike drive further customer expansion and revenue growth.

How Competitors Fare Against CRWDCompetitors like Palo Alto Networks (PANW - Free Report) and SentinelOne (S - Free Report) are also gaining ground through platform expansion and AI innovation.

In the third quarter of fiscal 2026, Palo Alto Networks saw robust growth in its Next-Gen Security ARR, which increased 60% year over year. The growth was driven by increased customer adoption of PANW’s advanced cybersecurity offerings, including its AI-driven XSIAM platform, SASE and software firewalls.

Though comparatively a small competitor, SentinelOne posted second-quarter fiscal 2027 year-over-year growth of 22% in its ARR. The growth was fueled by the rising adoption of SentinelOne’s AI-first Singularity platform and Purple AI.

CRWD’s Price Performance, Valuation & EstimatesShares of CrowdStrike have surged 124.4% in the year-to-date period compared with the Zacks Security industry’s return of 117.6%.

CRWD’s YTD Price Return Performance
Image Source: Zacks Investment Research

From a valuation standpoint, CrowdStrike trades at a forward price-to-sales ratio of 38.84, significantly higher than the industry’s average of 21.34. The Zacks Value Score of F suggests that CRWD stock is overvalued.

CRWD’s Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CrowdStrike’s fiscal 2027 and 2028 earnings indicates year-over-year growth of 35.5% and 28.2%, respectively. The estimates for fiscal 2027 and 2028 have remained unchanged over the past 30 days.

Image Source: Zacks Investment Research

CrowdStrike currently has a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A substantial price target raise gave plenty of lift to CrowdStrike Holdings (CRWD +4.57%) on Friday. Encouraged by that move, investors piled into the cybersecurity stock, sending it to a nearly 5% gain on a day when the S&P 500 index bumped 0.6% higher.

Secure in his recommendationThe pundit behind the hike was Needham's Mike Cikos, who lifted his CrowdStrike fair value assessment to $310 per share from $250. He maintained his buy recommendation on the mainstay of the cybersecurity sector.

Image source: Getty Images.

According to reports, Cikos' new take centered on the company's Falcon Flex. This is a subscription service that gives users access to a "pool" of the company's products, allowing them to switch in and out of CrowdStrike models as needed.

Citing a conversation his team had with company officials, Cikos concluded that Flex is enabling customers and adding to the value of its foundational platform. Another factor affecting his change was a set of minor adjustments he made to his free cash flow (FCF) estimates for the company's fiscal years 2027 and 2028.

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Playing defenseFalcon Flex is appropriately named, in my opinion, given the high degree of flexibility it gives CrowdStrike clients. The inexhaustible rise of artificial intelligence (AI) could create bad actors with powerful hacking tools, so the more nimble any cyber defense system, the better. I'd agree with Cikos' very bullish outlook on this stock's future.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike. The Motley Fool has a disclosure policy.

The third and fourth derivatives of the AI trade are starting to see returns on investment, says Dan Ives, who believes markets are in the midst of the "golden age" of AI. He adds that every dollar spent on the evolving tech will see five to six times the returns.

CrowdStrike (CRWD +3.80%) and Palantir Technologies (PLTR +3.71%) offer distinct ways to play the AI software revolution. Choosing between them requires weighing the resilience of an established cybersecurity leader against the rapid acceleration of a dominant data analytics platform.

CrowdStrike focuses on protecting endpoints through its AI-native Falcon platform, while Palantir helps organizations use AI to integrate data and drive critical decisions. As both companies compete for enterprise and government contracts, investors must decide which business model offers more durability in a rapidly evolving market for advanced software solutions.

The case for CrowdStrikeCrowdStrike provides AI-native cybersecurity through its cloud-based Falcon platform. It protects endpoints, identities, and cloud workloads for thousands of organizations worldwide. The company relies on Amazon (AMZN +2.68%) for essential infrastructure and recently introduced commitment packages to retain customers following a botched software update in 2024.

In the fiscal year ended Jan. 31, 2026, revenue reached $4.8 billion, a growth of 21.7% compared with the prior year. While the company reported a net loss of $162.5 million, it generated $1.3 billion in free cash flow (FCF). FCF is calculated by subtracting capital expenditures from cash flow from operations.

CrowdStrike operates within the competitive world of tech stocks, where liquidity is vital for ongoing innovation. As of its January 2026 balance sheet, the debt-to-equity ratio was 0.2x, while the current ratio was 1.8x. Note that stock-based compensation (SBC) represented roughly 68% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.

Palantir Technologies develops software that integrates massive datasets to help users make informed operational decisions. The company serves a diverse base of government and commercial clients, though a significant concentration among its top three customers adds a layer of risk to the business. It currently leverages strategic partnerships with Nebius Group (NBIS +0.46%) and SOMPO Holdings (NHOLF +2.19%) to expand its global footprint.

In the fiscal year ended Dec. 31, 2025, revenue reached $4.5 billion, representing growth of 56.2% year over year. The company reported a net income of $1.6 billion and generated $2.1 billion in free cash flow.

As of its December 2025 balance sheet, the current ratio was a robust 7.1x, and the debt-to-equity ratio was zero. These figures indicate significant liquidity and a lack of total debt relative to shareholder equity. Note that stock-based compensation represented 32% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.

Risk profile comparisonCrowdStrike faces significant operational and reputational risks stemming from its July 2024 software configuration update, which caused global system crashes. This incident led to ongoing litigation and potential customer churn as some clients deferred purchases or terminated contracts. Additionally, the company navigates intense cybersecurity competition from a variety of vendors, including Microsoft (MSFT +2.27%).

Palantir contends with high revenue concentration, as a small number of large commercial and government customers represent a substantial portion of its total sales. The loss of any major client or a reduction in government spending could materially impact financial performance. The company also relies heavily on third-party cloud infrastructure from Amazon and Microsoft to deliver its platforms.

Valuation comparisonPalantir displays a lower Forward P/E, which compares price to future earnings estimates, despite a higher P/S ratio measuring sales over the past twelve months.

MetricCrowdStrikePalantir TechnologiesForward P/E211.9x121.5xP/S ratio50.1x85.8xValuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?CrowdStrike and Palantir are excellent companies to invest in, which is why I own both. Which to choose is a tough decision, since they are delivering outstanding results, and possess different strengths and weaknesses. Ultimately, I think Palantir is the better stock to own.

Both have high valuations, so picking Palantir is about its far stronger financial profile compared to CrowdStrike. In the second quarter of 2026, Palantir's sales soared 93% year over year to $1.9 billion while net income rose 55% to $1.1 billion. This demonstrates the company is successfully capturing customer demand amid the artificial intelligence boom, and doing so while delivering outsized profits.

Also, I admire Palantir's CEO, Alex Karp. He is a straight shooter who tells it like it is, and the company's proprietary ontology gives its AI platform an edge over the competition.

As for CrowdStrike, while cybersecurity demand remains high, it's filled with vendors large and small vying for a piece of CrowdStrike's business. Also, its business remains unprofitable. In its fiscal second quarter ended July 31, it had an operating loss of $33.2 million, and was only able to deliver net income of $5.3 million due to $43.9 million in interest income.

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our analyst ratings page.

Morgan Stanley raised the price target for Robinhood Markets Inc (NASDAQ:HOOD) from $150 to $160. Morgan Stanley analyst Michael Cyprys maintained an Overweight rating. Robinhood shares closed at $107.01 on Thursday. See how other analysts view this stock.Rosenblatt cut Webull Corp (NASDAQ:BULL) price target from $15 to $12. Rosenblatt analyst Chris Brendler maintained a Buy rating. Webull shares closed at $5.95 on Thursday. See how other analysts view this stock.Stifel slashed price target for Align Technology Inc (NASDAQ:ALGN) from $210 to $175. Stifel analyst Jonathan Block maintained a Buy rating. Align Technology shares closed at $141.03 on Thursday. See how other analysts view this stock.HC Wainwright & Co. cut the price target for Pacira Biosciences Inc (NASDAQ:PCRX) from $38 to $36.5. HC Wainwright & Co. analyst Douglas Tsao downgraded the stock from Buy to Neutral. Pacira Biosciences shares closed at $36.39 on Thursday. See how other analysts view this stock.Cantor Fitzgerald raised Sailpoint Inc (NASDAQ:SAIL) price target from $25 to $27. Cantor Fitzgerald analyst Jonathan Ruykhaver maintained an Overweight rating. Sailpoint shares closed at $20.02 on Thursday. See how other analysts view this stock.BTIG boosted Unity Software Inc (NYSE:U) price target from $51 to $53. BTIG analyst Clark Lampen maintained a Buy rating. Unity Software shares closed at $45.89 on Thursday. See how other analysts view this stock.Needham raised CrowdStrike Holdings Inc (NASDAQ:CRWD) price target from $250 to $310. Needham analyst Mike Cikos maintained a Buy rating. Crowdstrike shares closed at $263.01 on Thursday. See how other analysts view this stock.Baird increased the price target for Humana Inc (NYSE:HUM) from $390 to $596. Baird analyst Michael Ha upgraded the stock from Neutral to Outperform. Humana shares closed at $387.12 on Thursday. See how other analysts view this stock.Leerink Partners increased Arcturus Therapeutics Holdings Inc (NASDAQ:ARCT) price target from $13 to $19. Leerink Partners analyst Lili Nsongo maintained an Outperform rating. Arcturus Therapeutics shares closed at $12.87 on Thursday. See how other analysts view this stock.Scotiabank cut AT&T Inc (NYSE:T) price target from $27.5 to $26.5. Scotiabank analyst Maher Yaghi maintained a Sector Perform rating. AT&T shares closed at $24.59 on Friday. See how other analysts view this stock.Considering buying CRWD stock? Here’s what analysts think:

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CrowdStrike Holdings Inc (NASDAQ:CRWD) stock is trading 0.3% lower at $264.69, as the shares continue to retreat from Tuesday's $286.99 all-time high.

olrat/iStock Editorial via Getty Images

Download this episode on Apple Podcasts/Spotify or listen below:

The Pentagon is investigating how sensitive Lockheed Martin (LMT) F-35 parts went missing from UPS. (00:14) CrowdStrike (CRWD) traces AI-assisted cyberattacks targeting banks in South Korea. (01:54) Costco's (COST) sales surge continued in September. (02:44)

This is an abridged transcript.

Sensitive components from Lockheed Martin (LMT) for the F-35 stealth fighter are missing.

U.S. officials said they are working with industry partners to recover the components and prevent another diversion.

Bloomberg News reported Wednesday that the shipment included an F-35 cockpit canopy and a weapons-bay door coated with radar-absorbing material used to reduce the aircraft’s detectability. Freight forwarder DSV warned UPS by email that the components could not pass through certain countries under International Traffic in Arms Regulations, or ITAR.

So, how did this happen?

UPS (UPS) routed the shipment through Hong Kong after an employee did not see a warning that the shipment was subject to U.S. arms-export restrictions.

The parts were supposed to travel from Australia to San Francisco through South Korea and Taiwan. After the shipment was delayed, however, it was rerouted through Hong Kong in an effort to make up time.

The report says the ITAR warning from DSV may have arrived through a different information system than the one being used by the UPS employee handling the shipment.

The Pentagon and State Department are investigating the diversion, while lawmakers are pressing for a broader review of how U.S. weapons components are transported internationally.

The Pentagon has characterized the components as unserviceable, but their radar-absorbing coatings have raised concerns about whether China could study the materials for information about F-35 stealth technology. The aircraft has long been a target of Chinese intelligence efforts.

U.S. cybersecurity firm CrowdStrike (CRWD) said a suspected China-based attacker used AI tools to target South Korean financial institutions between late September and early October.

CrowdStrike (CRWD) said the unidentified threat actor used Chinese-developed ARTEX, an open-source AI penetration-testing tool, alongside large language models. The firm assessed with moderate confidence that the attacker was a Chinese speaker and financially motivated.

CrowdStrike (CRWD) also found Claude Code session records containing personal details that may point to a 26-year-old based in Guangdong, China. However, the firm said it could not definitively associate those details with the attacker.

At least nine South Korean banks have reported or been linked to cyberattacks since late September.

Costco Wholesale Corporation (COST) reported net sales of $30.0B for the retail month of September, an increase of 13.0% from a year ago. Analysts expected a strong month with some consumers willing to make an extra trip to the retailer for its lower-than-average gas prices.

The company said comparable sales for the five-week period that ended October 4 were up 11.4%, including a 12.5% increase in the U.S., a 6.3% rise in Canada, and a 10.8% gain for other international markets. E-commerce comparable sales shot up 19.0% for the month.

After stripping out the impact of foreign exchange and gas prices, comparable sales were up 7.6% during the month, including an increase of 8.0% in the U.S.

Catalyst watch:

Notable investor events include Mission Produce's (AVO) Investor Day.

Zeta Global (ZETA) will hold its Zeta Live event. Speakers include Zeta CEO David Steinberg, ZoomInfo (GTM) CEO Henry Schuck, and Taboola (TBLA) CEO Adam Singolda.

PepsiCo (PEP) will hold its earnings conference call. Investors will be focused on whether PepsiCo can sustain its early North American volume recovery, while protecting margins amid heavier brand investment, and affordability initiatives. Some analysts think the food and beverage giant's prior full-year outlook is at risk of a downward revision. Celsius Holdings (CELH) derives more than 40% of its revenue from PepsiCo and traded in tandem with it on earnings day 88% of the time.

Stock index futures are in the red.

Crude oil is up 3.8% at $91. Brent crude is up 3.8% at $104.

The FTSE 100 is down 0.4% and the DAX is down 0.7%. China's (SHCOMP) markets were open again following a week-long holiday.

One stock on the biggest movers list: Applied Digital (APLD) +3.6% - Shares rose after the neocloud provider reported upbeat FQ1 with revenue up 322% Y/Y.

Economic calendar:

8:30 am Jobless Claims

Shares of CrowdStrike Holdings (CRWD -4.81%) were trading sharply lower on Wednesday, falling as much as 5.1% in early trading and were still down 5% as of 3:08 p.m. ET.

The catalyst that sent the cybersecurity stock lower was the weight of its recent run and the force of gravity.

Image source: The Motley Fool.

What goes up must come downFor a time, it seemed like CrowdStrike could do no wrong. Fears about the use of AI agents for hacking, intrusions, and other cyberattacks have lit a fire under the stock. Indeed, the stock notched gains for eight consecutive market days, climbing 10.6% through yesterday's market close and ending the day's trading at $278.86 -- a new all-time high.

It seemed each of those days brought more positive developments for the company.

OpenAI notified more than 100 organizations that its AI agents had attempted or successfully accessed their systems — suggesting they need to beef up their cybersecurity.An investigation by the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) into how CrowdStrike handled certain transactions with a vendor was closed without further action.Several Wall Street analysts increased their price targets on CrowdStrike, suggesting additional upside of as much as 16% compared to Tuesday's close.CrowdStrike announced that its Fal.Con Europe cybersecurity conference had sold out in record time.There were more, but you get the picture.

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So why is CrowdStrike stock down today?Simply put, there was no specific news that drove CrowdStrike lower today. However, the stock is up 126% year-to-date, with a commensurate increase in its valuation. Indeed, the stock is currently selling for 222 times forward earnings and 174 times next year's expected earnings.

So, while the opportunity is vast, I believe the stock finally collapsed under the weight of its recent stratospheric gains and the force of gravity. That said, since its IPO in mid-2019, CrowdStrike has gained 1,730%. Moreover, the ongoing adoption of AI highlights the growing need for more robust cybersecurity -- an opportunity the company continues to exploit. These factors help illustrate why some investors are still willing to pay a premium for CrowdStrike.

Danny Vena, CPA has positions in CrowdStrike. The Motley Fool has positions in and recommends CrowdStrike. The Motley Fool has a disclosure policy.

CrowdStrike (CRWD -3.29%) sits at the center of a fast-growing collision between AI and cybersecurity. Falcon adoption, expanding ARR, and rising demand for AI security could support a much larger business, but the path to $500 requires strong growth, higher GAAP margins, and a premium valuation to persist. The numbers show exactly what would need to go right.

Stock prices used were the market prices of Sept. 14, 2026. The video was published on Oct. 2, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike. The Motley Fool has a disclosure policy. Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

AUSTIN, Texas--(BUSINESS WIRE)--CrowdStrike (NASDAQ: CRWD) today announced it has been named a Leader in the IDC MarketScape: Worldwide Modern Endpoint Security for Enterprises 2026 Vendor Assessment.1

AI is now part of every enterprise, and the endpoint is where agents act autonomously at machine speed with system-level privilege. CrowdStrike pioneered AI-native EDR and is defining what customers need to secure AI with AI Detection and Response (AIDR). CrowdStrike's AIDR business has grown more than 79-fold2 in three quarters since launch, with Falcon Guardian securing AI agents at the point of execution.

“CrowdStrike pioneered this market, and the world's leading organizations trust the Falcon platform to stop breaches,” said AJ Shipley, chief product officer at CrowdStrike. “Deployed across hundreds of millions of devices and powered by cybersecurity’s richest data set, CrowdStrike has the structural advantage to lead as AI becomes the new attack surface. We secure AI where it executes, on the endpoint at runtime, and we believe this recognition reflects how we continue to define the future of security.”

Giving Defenders the AI Advantage

As adversaries weaponize AI and compress the defender’s window to respond, the report notes “every vendor in this market now markets AI, so the question is no longer whether AI is present but whether it is applied where it changes outcomes.” CrowdStrike’s profile notes some key strengths including “deep AI and agentic investment translating into reported SOC efficiency gains, backed by a very large real-time telemetry pipeline processing trillions of events daily.”

One Unified Platform to Stop Cross-Domain Attacks

AI-driven threats don’t stay on the endpoint; they target every domain at once. CrowdStrike’s unified architecture extends real-time protection across the enterprise. The IDC MarketScape noted another key strength: “broad, natively delivered platform spanning endpoint, identity, cloud, data, exposure management, and increasingly browser and mobile security, reducing reliance on third-party point products.”

To learn more about why CrowdStrike has been named a Leader in the IDC MarketScape: Worldwide Modern Endpoint Security for Enterprises 2026 Vendor Assessment, visit here.

About IDC MarketScape

IDC MarketScape vendor assessment model is designed to provide an overview of the competitive fitness of technology and service suppliers in a given market. The research utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each supplier’s position within a given market. IDC MarketScape provides a clear framework in which the product and service offerings, capabilities and strategies, and current and future market success factors of technology suppliers can be meaningfully compared. The framework also provides technology buyers with a 360-degree assessment of the strengths and weaknesses of current and prospective suppliers.

About CrowdStrike

CrowdStrike (NASDAQ: CRWD), a global cybersecurity leader, has redefined modern security with the world’s most advanced cloud-native platform for protecting critical areas of enterprise risk – endpoints and cloud workloads, identity and data.

Powered by the CrowdStrike Security Cloud and world-class AI, the CrowdStrike Falcon® platform leverages real-time indicators of attack, threat intelligence, evolving adversary tradecraft, and enriched telemetry from across the enterprise to deliver hyper-accurate detections, automated protection and remediation, elite threat hunting, and prioritized observability of vulnerabilities.

Purpose-built in the cloud with a single lightweight-agent architecture, the Falcon platform delivers rapid and scalable deployment, superior protection and performance, reduced complexity, and immediate time-to-value.

CrowdStrike: We stop breaches.

Learn more: https://www.crowdstrike.com/
Follow us: Blog | X | LinkedIn | Instagram
Start a free trial today: https://www.crowdstrike.com/trial

© 2026 CrowdStrike, Inc. All rights reserved. CrowdStrike and CrowdStrike Falcon are marks owned by CrowdStrike, Inc. and are registered in the United States and other countries. CrowdStrike owns other trademarks and service marks and may use the brands of third parties to identify their products and services.

AUSTIN, Texas--(BUSINESS WIRE)--CrowdStrike (NASDAQ: CRWD) today announced that Fal.Con Europe 2026 has sold out, reaching capacity faster than ever with registrations up 60% over last year. The momentum builds on a record-setting Fal.Con 2026 in Las Vegas, where more than 10,000 cybersecurity leaders confronted a defining reality for the AI era: every advance in AI can serve the attacker or the defender. AI is part of the enterprise and security is the enabler to deploy faster without losing c.

Don't look now, but one of the hottest tickets in tech industry events is being led by cybersecurity specialist CrowdStrike (CRWD +2.27%). On news that an upcoming industry conference it's helming has already set records, investors eagerly bought the stock, sending it to a more than 2% gain on Tuesday. CrowdStrike also received a substantial price target increase from an analyst.

The wisdom of crowds That morning, CrowdStrike announced that its upcoming Fal.Con Europe2026 event has sold out, reaching capacity more quickly than ever in its three-year history. On top of that, registrations were up a meaty 60% over last year's conference.

Image source: Getty Images.

Over the decade CrowdStrike has been running Fal.Con (at least in its native U.S.) it has grown into a major event for the cybersecurity industry. This bolsters the case for CrowdStrike as a bellwether company in its sector, and a pacesetting business that others want to listen to and learn from.

Separately, the company's equity was the focus of a new analyst note, and a positive one at that. StoneX analyst Yi Fu Lee upped his price target on CrowdStrike shares to $325 apiece, well up from his previous $250. Almost needless to say, he maintained his buy recommendation.

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Growing AI fears The excited and enthusiastic reaction to the next Fal.Con Europe indicates that cybersecurity is, if anything, an even hotter focus of attention than it was in years past. I'd say much of this stems from recent issues in artificial intelligence (AI) development, such as incidents where certain models strayed from their assigned tasks during deployment.

Like numerous peer companies, CrowdStrike has been concentrating on AI security lately. That, plus its position as the operator of the Fal.Con conferences, is sure to keep it on the list of elite cybersecurity businesses for both clients and investors.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike. The Motley Fool has a disclosure policy.

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is positioning itself for sustained cybersecurity growth as demand for endpoint protection, AI security and agent-focused tools expands, though BNP Paribas remains cautious on the stock’s valuation.

The stock has gained over 147% in 2026, surging 30% in the last month driven by AI-driven cybersecurity demand.

BNP Paribas Sees Longer EDR TailwindAnalyst Andrew DeGasperi said the firm came away more constructive on CrowdStrike’s long-term financial targets, AI detection and response opportunities, and identity protection prospects after a virtual fireside chat with company executives.

CrowdStrike did not update its fiscal-year guidance during the discussion.

DeGasperi said CrowdStrike sees a meaningful opportunity to gain endpoint detection and response, or EDR, market share following Mythos. The company had already been seeing acceleration in its flagship product before events earlier this year.

CrowdStrike’s investor-relations team sees an opportunity to target the 48% of the market still using legacy solutions.

DeGasperi said that opportunity could support growth for several years because EDR contracts typically run for about five years.

He also highlighted CrowdStrike’s unified control plane, which combines traditional endpoint security with AI-focused capabilities. BNP Paribas believes that structure could give CrowdStrike an advantage over legacy EDR vendors that lack an integrated AI sensor.

Long-Term Targets May Prove ConservativeDeGasperi said CrowdStrike’s long-term growth assumptions could prove conservative.

The company is targeting more than 20% net new annual recurring revenue growth in fiscal 2028. It also aims to reach $10 billion in ARR by fiscal 2030 and $20 billion by fiscal 2035.

Those long-term targets assume CrowdStrike captures roughly 3.5% of an estimated $565 billion AI-security total addressable market.

BNP Paribas noted that CrowdStrike’s current market share is already around 4%. Combined with potential EDR share gains over the next four to five years, that suggests the company’s assumptions may leave room for upside.

AI Security Adds Another Growth DriverDeGasperi also pointed to CrowdStrike’s recent Fal.Con innovations, including Guardian and SafeMind.

Guardian is already generally available, while SafeMind runs on Nvidia’s Nemotron. CrowdStrike’s investor-relations team clarified that SafeMind does not compete with NVIDIA Corp.’s new security product.

BNP Paribas said SafeMind offers customers a cost-effective, purpose-built model to detect rogue agent behavior.

Despite the constructive operating outlook, BNP Paribas maintained its Equal-weight-style stance, with a $180 price forecast versus a $270 share price as of Oct. 2, implying 33% downside.

CRWD Stock Price Activity: CrowdStrike Holdings shares are trading higher by 3.12% at $281.18 at the time of publication on Tuesday, according to Benzinga Pro data.

The stock hit a new record high of $286.99 during the session. Over the past 12 months, the stock has gained 126.8%, outpacing the S&P 500’s 16.1% gain.

Photo: Shutterstock

Read Next

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Price swings send plenty of investors running for the exits. To a trader who spent years making markets on an options floor, those same swings look like the opportunity.

That tension runs through three corners of the market right now. Cybersecurity stocks keep climbing even on down days. Copper keeps pressing against multiyear highs as AI infrastructure strains supply. Uranium names have pulled back hard enough to look like a sale to anyone still convinced nuclear demand is real.

The connective tissue is conviction. When the reasons for owning a sector have not changed, a lower price may simply be a better entry point, and options can turn that volatility into a capped, defined risk rather than a gut check.

Get Rubrik alerts:

Volatility as an Entry Point, Not an Exit SignalJonathan Rose, a trader with InvestorPlace and a former market maker on the floor of the Chicago Board Options Exchange, treats volatility as uncertainty with a price tag. Today, that uncertainty stems from interest rates, the midterm elections and a relentless news cycle.

Volatile stocks carry richer option premiums, which long-term holders can harvest by selling upside calls against their shares in a covered call. Pullbacks also open the door to averaging into favorite names. In a broad 10% sell-off, there is nowhere to hide, so the real question is which holdings deserve more capital.

For traders, Rose favors buying out-of-the-money calls, where the premium paid is the maximum loss. With a stock at $10, a $12 call priced at 50 cents costs $50, since each contract covers 100 shares. Ten contracts cost $500, and that is the ceiling on risk.

Cybersecurity Spending Turns Non-Discretionary as AI Threats MultiplyPicture a corporate board asking about AI security. No executive wants to explain why the company is not spending on defense. That logic underpins Rose's view that cybersecurity has become non-discretionary spending with room to grow for the next 5 to 10 years.

Price action supports it, in his view. Even as the broader market has pulled back, the cybersecurity names on his watchlist have kept climbing, breaking correlation with the market, a bullish tell from a trader's seat.

Rubrik Today

$126.12 +3.44 (+2.81%)

As of 10:31 AM Eastern

This is a fair market value price provided by Massive. Learn more.

$42.25▼

$127.90$114.42

His favorite is Rubrik NYSE: RBRK, which he sees as a less speculative pick in a group where many companies are still pure speculation. At roughly $13 billion in market value, it sits far below CrowdStrike NASDAQ: CRWD and Palo Alto Networks NASDAQ: PANW. That size is the point—companies under $20 billion can still rerate, and most investors already hold the giants through exchange-traded funds (ETFs).

Big money appears to agree. Rose flagged unusual activity in Rubrik's January 2028 $145 calls, with about 5,000 contracts trading near $25 each.

Since each contract covers 100 shares, that is exposure to 500,000 shares above $145, a long-dated bet placed with the stock near $115.

AI anxiety has inflated option premiums, so calls cost more than usual. What could shift sentiment is continued proof that security budgets hold up regardless of the economy.

Copper Exposure Comes in 2 Sizes, From Steady Producer to High-Beta MinerFreeport-McMoRan Today

FCX

Freeport-McMoRan

$71.35 -1.25 (-1.72%)

As of 10:31 AM Eastern

This is a fair market value price provided by Massive. Learn more.

$38.54▼

$80.240.42%

35.15

$74.67

The AI bottleneck still runs through commodities, per Rose, and copper is his favorite as its cash price tests decade highs.

Freeport-McMoRan NYSE: FCX is the established route. Shares pulled back after 2025 mudslides at one of its main mines, and with copper still setting 10-year highs, Rose sees the stock with catching up to do.

Ero Copper NYSE: ERO, about one-tenth the size, tracks copper closely but with thinner liquidity and bigger swings. Smaller miners also risk running short on capital before reaching steady profits, a risk Rose calls ever-present.

Liquidity is the dividing line. Names like Apple NASDAQ: AAPL and Alphabet NASDAQ: GOOGL are priced so efficiently that Rose's options trades look elsewhere for opportunity.

Both copper stocks express the same view. For a buy-and-hold stake in an individual retirement account (IRA), Rose prefers Freeport-McMoRan. For out-of-the-money calls, he would rather trade Ero Copper's volatility than the "big slow barge" of its larger peer. The cash copper price is the variable to watch for both.

A Uranium Pullback Tests Conviction in Long-Term Nuclear DemandUranium and the broader nuclear sector have swung wildly over the past 6 months to a year, and Rose reads the recent pullback as good timing.

Uranium Royalty Today

$4.18 +0.12 (+2.83%)

As of 10:31 AM Eastern

This is a fair market value price provided by Massive. Learn more.

$2.56▼

$5.5246.50

$4.13

His pick is Uranium Royalty Corp. NASDAQ: UROY, which collects royalties from mining operations rather than running mines itself.

He first highlighted it about a year ago, when shares traded in the high $2 to low $3 range, and still sees it as a long-term way to own a uranium view.

His discipline is easy to state and hard to follow. Write down the reasons for owning a position, then revisit them when the price drops. If nothing has changed, the stock just went on sale.

That pairs with a hybrid approach that holds the stock in sectors worth owning for years and uses options around pullbacks to lock in gains on the next rally.

Conviction in the Sector Matters More Than Daily Price SwingsRubrik, Freeport-McMoRan, Ero Copper and Uranium Royalty span different industries but share a structure. Each rides a long-term demand story, from AI-driven security budgets to copper-hungry infrastructure to nuclear power, and each swings hard enough to rattle holders.

The upside is that volatility rewards defined risk and patience. Out-of-the-money calls cap losses at the premium paid, and pullbacks in favored sectors offer long-term holders better entry points.

The risk is that conviction hardens into stubbornness. Options can expire worthless, junior miners can burn through cash, and sentiment around AI and nuclear can turn faster than fundamentals.

None of this depends on timing a market bottom. It depends on cybersecurity demand, copper prices and uranium growth staying intact. Stay focused on those drivers, because that's what moves these four stocks once the noise fades.

Traders who want a structured path into calls, puts and defined-risk strategies can try out Jonathan Rose's Masters in Trading Challenge options education program.

Should You Invest $1,000 in Rubrik Right Now?Before you consider Rubrik, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Rubrik wasn't on the list.

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The AI boom is creating opportunities across semiconductors, cloud computing, enterprise software, infrastructure, cybersecurity, and automation.

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CrowdStrike Holdings (CRWD - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this cloud-based security company have returned +26.7%, compared to the Zacks S&P 500 composite's +0.6% change. During this period, the Zacks Security industry, which CrowdStrike falls in, has gained 14.6%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

CrowdStrike is expected to post earnings of $0.31 per share for the current quarter, representing a year-over-year change of +29.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -50%.

For the current fiscal year, the consensus earnings estimate of $1.26 points to a change of +35.5% from the prior year. Over the last 30 days, this estimate has changed -15%.

For the next fiscal year, the consensus earnings estimate of $1.61 indicates a change of +28.2% from what CrowdStrike is expected to report a year ago. Over the past month, the estimate has changed +0.3%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for CrowdStrike.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For CrowdStrike, the consensus sales estimate for the current quarter of $1.53 billion indicates a year-over-year change of +23.8%. For the current and next fiscal years, $6 billion and $7.34 billion estimates indicate +24.6% and +22.4% changes, respectively.

Last Reported Results and Surprise HistoryCrowdStrike reported revenues of $1.47 billion in the last reported quarter, representing a year-over-year change of +25.8%. EPS of $0.31 for the same period compares with $0.23 a year ago.

Compared to the Zacks Consensus Estimate of $1.44 billion, the reported revenues represent a surprise of +2.15%. The EPS surprise was +6.9%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

CrowdStrike is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about CrowdStrike. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.

Salesforce: Steady Revenue Generation at Large ScaleSalesforce (CRM -0.84%) primarily generates revenue by providing cloud-based customer relationship management (CRM) platforms and enterprise software to global businesses.

During the most recent quarter, it finalized its strategic acquisition of customer agent platform Fin to actively integrate specialized technical teams to capitalize on the artificial intelligence boom.

It simultaneously navigated a widespread global service disruption that temporarily impacted user logins, application programming interfaces, and daily operational workflows across multiple international regions.

CrowdStrike: Delivering Faster Revenue ExpansionCrowdStrike (CRWD +1.48%) primarily generates revenue through subscription sales of its cloud-native cybersecurity platforms and endpoint protection modules to enterprises.

It recently appointed a new Chief Product Officer to oversee ongoing platform development initiatives, while it concurrently expanded a major strategic partnership with Schwarz Digits to offer localized sovereign cloud security capabilities specifically tailored for large European enterprise clients.

Why Revenue Matters for InvestorsRevenue represents the total incoming operating funds generated before any business expenses are officially deducted. This metric helps investors measure a company's overall size, market footprint, and long-term trajectory.

Quarterly Revenue for Salesforce and CrowdStrikeCalendar quarterSalesforce RevenueCrowdStrike RevenueQ3 2024$9.4 billion (quarter ended Oct. 31, 2024)$1.0 billion (quarter ended Oct. 31, 2024)Q4 2024$10.0 billion (quarter ended Jan. 31, 2025)$1.1 billion (quarter ended Jan. 31, 2025)Q1 2025$9.8 billion (quarter ended April 30, 2025)$1.1 billion (quarter ended April 30, 2025)Q2 2025$10.2 billion (quarter ended July 31, 2025)$1.2 billion (quarter ended July 31, 2025)Q3 2025$10.3 billion (quarter ended Oct. 31, 2025)$1.2 billion (quarter ended Oct. 31, 2025)Q4 2025$11.2 billion (quarter ended Jan. 31, 2026)$1.3 billion (quarter ended Jan. 31, 2026)Q1 2026$11.1 billion (quarter ended April 30, 2026)$1.4 billion (quarter ended April 30, 2026)Q2 2026$11.3 billion (quarter ended July 31, 2026)$1.5 billion (quarter ended July 31, 2026)Data source: Financial Modeling Prep. Data as of Sept. 25, 2026.

Foolish TakeBoth Salesforce and CrowdStrike are leaders in their respective industries, delivering popular software platforms for enterprise customers. The former's revenue is far larger than the latter's, illustrating the substantial market size for CRM and related services.

That said, CrowdStrike is enjoying quarter-over-quarter sales growth, which is much faster than the year-over-year increases typically seen with successful companies. This speaks to the strong demand it's seeing as a result of AI's arrival.

Artificial intelligence is able to hack into an organization with unprecedented speed and skill. This has created a tailwind for CrowdStrike's business, as the need for cybersecurity resilient to AI attacks has risen in importance. In a sign of the strong demand the company is seeing, the $1.5 billion in revenue in its fiscal Q2, ended July 31, represented outstanding 26% year-over-year growth.

That's not to say Salesforce's business is not doing well, since it continues to enjoy consistent year-over-year sales increases. The revenue of $11.3 billion in its fiscal Q2 was an 11% jump over the prior year. Still, that pales in comparison to CrowdStrike's rapid revenue acceleration.