CrowdStrike Stock Price Explodes 20% On Earnings Beat

Shares of CrowdStrike (NASDAQ:CRWD) are trading around 20% higher today after the cybersecurity company smashed earnings forecast.

Fundamental analysis: Sales doubled

CrowdStrike announced a fourth-quarter loss of $28.4 million, compared to a loss of $31.2 million a year ago. Adjusted earnings per share came in at negative $0.02 per share, beating analysts forecasts of $0.08 a share.

The cybersecurity company also reported that its revenue almost doubled to $152.1 million, from $80.5 million a year ago. Analysts expected a revenue of $137.8 million.

CrowdStrike previously communicated that it expects to lose between $0.09 to $0.08 a share on the revenue of $135.9 million to $138.6 million in the fourth quarter.

For the first quarter, CrowdStrike said it expects an adjusted loss of $0.07 cents to $0.06 cents a share. For the full year, the company forecasts a loss of $0.14 to $0.10 a share on revenue of $723.3 million to $733.5 million.

Technical analysis: Half of the losses erased

Following such a positive earnings report, it is not surprising that the shares of CrowdStrike rallied as much as 20% in the post market yesterday, a rally which has continued in the premarket trading session as well.

CrowdStrike stock daily chart (TradingView)

With today’s gains, Crowdstrike stock price has recovered around 50% of its recent losses. A few days ago, the stock price printed an all-time low of $31.95. A weekly close above the $45 mark would be an important milestone for the bulls.

The price action is now approaching the key short-term resistance area ranging from $50 to $54. A break of this zone paves the way for a test of the February high of $67.56.

Summary

Shares of CrowdStrike trade around 20% higher after the company reported better-than-expected fourth-quarter earnings. The revenue numbers smashed forecasts, while the company also earned more than expected.