CrowdStrike stock pops 10% on earnings, outlook
Shares of CrowdStrike Holdings (CRWD) closed 10% higher after posting better-than-expected fourth quarter results and guidance. The cybersecurity company also announced it would be acquiring Flow Security in a deal set to close in its fiscal first quarter.
Yahoo Finance's Julie Hyman and Josh Lipton break down the market reaction to the results.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Stephanie Mikulich
Video Transcript
JOSH LIPTON: One stock to watch that would have to be CrowdStrike today. Look at the surge that stock made, up about 11%. Reported Q4 results that beat the guidance also pleasing the Street. Interesting in this cybersecurity space and how it's kind of playing out, some like CrowdStrike clearly capitalizing. Others, by the way, like Palo Alto Networks, have disappointed investors.
We did speak with Piper's Rob Owens on the show. Bottom line, he says this cyber space right now sets up as well as any he has seen in the past couple decades. By the way, tomorrow, remember, CrowdStrike CEO George Kurtz will be on Yahoo Finance. Can't miss interview there, Julie.
JULIE HYMAN: Yeah. And that's something that Cory Johnson just talked about that it's interesting here that we are starting to see companies differentiate themselves even in the same space, which he said is a better environment for a stock picker's market here.
Morgan Stanley analyst Hamza Fodderwala saying today, there is no spending fatigue here when it comes to CrowdStrike, which is interesting given what we heard from Palo Alto. So I imagine, as we get through the coming quarters, we'll get a little more color on whether it's an execution issue, whether it's an overall demand issue, and what's going on in this.
JOSH LIPTON: This stock, by the way, now up about 160% in the past 12 months. But analysts not deterred, overwhelmingly bullish on the Street.
JULIE HYMAN: Interesting.
