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Is CrowdStrike Holdings' (NASDAQ:CRWD) Share Price Gain Of 153% Well Earned?

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The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. For example, the CrowdStrike Holdings, Inc. (NASDAQ:CRWD) share price had more than doubled in just one year - up 153%. And in the last week the share price has popped 5.5%. Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.

View our latest analysis for CrowdStrike Holdings

CrowdStrike Holdings wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year CrowdStrike Holdings saw its revenue grow by 81%. That's a head and shoulders above most loss-making companies. And the share price has responded, gaining 153% as we previously mentioned. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. Given the positive sentiment around the stock we're cautious, but there's no doubt its worth watching.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
earnings-and-revenue-growth

CrowdStrike Holdings is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. If you are thinking of buying or selling CrowdStrike Holdings stock, you should check out this free report showing analyst consensus estimates for future profits.

A Different Perspective

It's nice to see that CrowdStrike Holdings shareholders have gained 153% over the last year. That's better than the more recent three month gain of 2.8%, implying that share price has plateaued recently. Having said that, we doubt shareholders would be concerned. It seems the market is simply waiting on more information, because if the business delivers so will the share price (eventually). I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 2 warning signs for CrowdStrike Holdings that you should be aware of before investing here.

We will like CrowdStrike Holdings better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.