The cybersecurity stock surged because the market looked beyond good results and bought into a much bigger story about the future.
If you held CrowdStrike (CRWD) over the last year, you’re feeling pretty good
Following the company’s recent 4-for-1 stock split, the stock delivered a +55% return, climbing from a split-adjusted $128.52 to $199.38 and handily beating the S&P 500’s +21.2% gain. While peer Palo Alto Networks (PANW) did even better, CrowdStrike significantly outperformed the broader cybersecurity sector. So what gives?
The answer extends beyond a string of solid quarters. The real story is how the market suddenly re-rated the company’s entire future. The market started believing that for every dollar a company pours into the AI boom, it has no choice but to spend another on protecting it.