CrowdStrike Stock Forecast and Prediction: Can ($CRWD) Reach $400.00 in 2024?
CrowdStrike Stock (CRWD) has witnessed a significant increase, which can be attributed to the renewed focus of investors on cybersecurity enterprises and artificial intelligence (AI). Let’s dive into our CrowdStrike stock forecast to see if this is a buy or sell.
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CRWD Overview
CrowdStrike is a prominent Software as a Service (SAAS) organization on a global scale with a market capitalization that surpasses $68 billion. The organization is a market leader in Gartner’s Magic Quadrant for Endpoint Protection, surpassing rivals including Microsoft, SentinelOne, Palo Alto Networks, and Trend Micro.
Its principal offering, Falcon, is a suite of software programs that employ cutting-edge technologies, such as artificial intelligence, to detect and prevent cloud-based threats. The annual cost of the enterprise version commences at $499.95, whereas the Falcon Enterprise is priced at $924.95.
Pricing for small businesses commences at $4.99 per device per month, whereas the Falcon Pro plan is offered for $8.33 per month. The aforementioned solutions have garnered global recognition in tandem with the exponential growth of the cybersecurity sector.
The quarterly financial results indicated a total revenue growth of 35% to $786 million. Subsequently, professional services generated $52.6 million, an increase of 57%, while subscription revenue reached $733 million. The upward revision of full-year revenue guidance to a range of $3.04 billion to $3.05 billion, reflecting a 36% growth rate, was prompted by the achievement of net income of $199 million.
However, investors are apprehensive regarding CrowdStrike’s flawless valuation. The company has an estimated FY’24 revenue of $3.05 billion and a market capitalization of $68 billion. Its price-to-earnings (P/S) ratio is 22.30, which is significantly greater than Microsoft’s P/S ratio of 10.
Based on an anticipated net income of $717 million, the projected P/E ratio of 94 provides additional evidence that CrowdStrike may be overvalued, in contrast to Microsoft and other SAAS companies with P/E ratios below 40.
Let’s see the upcoming price direction of this stock from the CRWD technical analysis.
See related stock forecasts for: $PLTR | $MULN
CrowdStrike Holdings Stock (CRWD) Weekly Chart
In the weekly price of CRWD, the long-term bullish trend became activated after having a considerable downside correction from 2022 to 2023. As the price recovered most of the losses and formed a V-shape recovery, investors might expect a strong bullish continuation after having a solid bullish price action.
In the monthly candlestick, the ongoing buying pressure has a solid background, as it came with six consecutive bullish monthly candles. Moreover, the 50-week EMA crossed over the 200-week SMA, which indicated a Golden Cross formation.
In a Golden Cross trading strategy, the aggressive buying approach might come after having a minor downside correction and a bullish recovery from the 50-day EMA level. For CRWD, a considerable downside correction is pending, as it recently moved way above the 50 DMA level. However, the bullish opportunity will remain valid in 2024 even if the price comes down to the 196.36 level, which is the 50% Fibonacci Retracement level from the latest swing.
Looking at the volume structure- the most active level since the September 2022 high and January 2023 low remains below the 50 DMA level, which indicates a bullish re-accumulation. It indicates the presence of a lot of order buildings in this area, which might attract investors after reaching closer to this area.
In the CRWD price prediction for 2024, investors might expect a considerable downside correction before joining the long-term bull run, targeting the 427.27 Fibonacci Extension level.
On the other hand, the recent bullish recovery from the multi-year low could be an immediate long opportunity. In that case, a bullish pressure with a daily close above the 300.00 level could increase the price towards the 427.00 area.
CrowdStrike Holdings Stock (CRWD) Ichimoku Cloud Analysis
In the current market structure of CRWD, the existing market momentum is bullish, as the recent price shows a stable momentum above the Kumo Cloud. Moreover, an upward slope is visible in the Futures Cloud, while dynamic Tenkan Sen and Kijun Sens act as near-term supports.
In the secondary window, the buying pressure looks stable as the Histogram maintains a stable momentum above the neutral zone. Moreover, the MACD signal line remains bullish above the neutral line, suggesting an ongoing buyers’ presence in the market.
Based on the CrowdStrike Stock (CRW) in 2024, the ongoing bullish pressure is valid as long as the price trades above the Ichimoku Cloud. The first long signal might come after an immediate buying pressure and a weekly close above the 300.00 level.
However, a downside correction is pending, which might offer another long opportunity from the 238.00 to 195.00 zone.
CrowdStrike Holdings Stock Forecast $CRWD
In the daily CRWD chart, a bull market is visible as the current price trades with an impulsive pressure above the visible range high volume level. Moreover, the dynamic 20 EMA acts as an immediate support above the 238.22 static level.
On the bullish side, another high could form after having a bullish rejection from the dynamic 20 EMA level. However, a bearish recovery with a redistribution phase below the 238.00 level could lower the price towards the 160.00 level.
Is CrowdStrike Holdings Stock (CRWD) A Buy?
Based on the current market outlook, CRWD could resume pushing higher in 2024 as the current fundamental structure looks potent for future price growth. Therefore, investors might expect a long opportunity once the downside correction is over.
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