Shares of CrowdStrike (CRWD) ended the day 2.9% higher after a better-than-expected earnings report moved the stock higher this morning.
Investors were braced for bad news after the massive outage that occurred on July 19th crashed about 8.5 million Windows devices, most notably those of Delta Airlines.
The company is facing multiple class action lawsuits along with a suit from Delta Airlines (DAL) for $500 million in damages. The company left little in the was of comment during the earnings report except to say that Delta had refused CrowdStrike’s help during the outage and that it's too early to determine what its legal responsibilities will be.
The company's earnings came in better than expected, beating estimates by 7 cents, and revenue grew by 31.7%, also beating analysts’ expectations.
On the earnings call, management guided revenue and earnings per share to the downside for next quarter and for fiscal year 2025, though they expect operations to remain robust.
Cheers made an initial serve above $280 a share, but later in the day settled at $270 within the last 10-days of trading range for the stock.
From a technical perspective. Crowd strikes 50 day moving average is in a bearish trend. The important trendline has been in a declining pattern since late July and sits at the $300.00 price level, ready to act as resistance?
The stocks 200 day moving average also sits at $300, Adding to the potential for resistance at that round number price.
Shares of CrowdStrike remain in a long-term bull market trend with the stock’s 20-month moving average acting as support at $220 dollars.
Shares of the fintech company Affirm (AFRM) did more than 30% higher today following the company’s positive earnings report released Thursday after the close.
For the company’s fourth quarter, it reported earnings per share that were $0.34 better than the market’s expectations. That represents Affirm’s best earnings per share beat since February of 2021.
The company's top line actual revenue beat by $59 million to show growth of 47.9% on a year-over- year basis. This represents the third quarter in a row of 40%+ growth of Affirm’s revenue.
Performance management provided positive guidance for the next quarter. The company expects to achieve revenue of $640-670 million compared to the current analysts’ expectations of $625 million.
The continued growth in revenue and management’s profitability forecast is what had the most positive effect on the stock in today’s trading.
Focusing on the stock’s price action, today's movement took the stock above its 200-day moving average for the first time since June 10th. Today’s positive move was on the stock’s heaviest volume since December 2023. At that time, the stock was amid a technically driven rally that took Affirm shares from $30 to $52 in less than a month.
A firm's shares remain in a long-term bullish trend as the stock is well above its 20-month moving average. The current long-term bull market trend started in November of 2024.
Shares of Affirm maintain a bullish outlook, with the target price of $60.
Shares of Sofi Technology (SOFI) rallied more than 7% today to close above their 200-day moving average.
The stock move was in sympathy of the positive earnings report and outlook given by Affirm Holdings (AFRM) after the close on Thursday, but there’s more to the story.
Sofi is in a class of stocks that are set to benefit from the upcoming drop of interest rates.
The Federal Reserve is expected to lower their target lending rate by 0.25-0.50% on September 18. That drop of interest rates will result in an increase in lending activity for companies like Sofi and other banking institutions.
Sofi’s shares have been in the process of forming a long-term technical bottom for three months around the $6.50 price point for the stock. Shares have traded as low as $6.00 this month.
Today’s move puts Sofi shares above their long-term 20-month moving average after slipping below the gauge of long-term momentum in April.
In addition, the intermediate-term 50- and 200-day moving averages have also turned bullish over the last week as both have started to trend higher.
The move in Sofi stock has all of the markings of a long-term turnaround as the fundamental environment appears to be improving for it and other lending-based stocks.
Sofi shares are upgraded from neutral to bullish with a price target of $10.
