CrowdStrike Holdings (CRWD) stock dropped 6% on Wednesday after the company’s forward-looking guidance fell short of investor’s expectations.
The company reported its latest quarterly earnings results following the closing bell on Tuesday.
For the fourth quarter, the company beat earning per share and revenue targets handily as the CrowdStrike grew its revenue more than 25% over last year’s comps.
Earnings per share were $0.17 better than their target of $0.86, but it’s CrowdStrike Management’s outlook that had investors selling shares.
The company guided both the fiscal year and first quarter earnings lower than Wall Street’s current target ranges as CrowdStrike is still dealing with last July's outage that crashed millions of Windows operating systems around the world.
At the same time, CrowdStrike is upping their investment in marketing and Ai infrastructure in 2025. That along with higher taxes will squeeze the security software company’s bottom line profits.
Shares are trading back at a familiar price, $350.
This is the price that CrowdStrike traded in a tight range around from November through mid-January before the stock saw a significant rally to $450 in February.
With those gains erased, investors are now left wondering where the stock’s next target lies.
Support at $350 will be critical over the next two weeks as market pressures and fallout from the earning outlook will set the course for CRWD shares into the second quarter.
The stock’s 50-day moving average is in a neutral trend and preparing to shift to intermediate-term bearish.
That, along with the potential for the stock to break below its 200-day moving average put CrowdStrike shares on the shelf when it comes to buying the current dip.
Instead, investors that hold the stock should consider protecting themselves with potential stop-loss targets using the $325 price as a trigger.
A move below that price will break below the stock’s 200-day moving average. The last time that CRWD shares broke that key trendline while their 50-day trend was bearish was in July 2025 ahead of an additional 30% drop. It needs to be noted that this is the time that CrowdStrike was embroiled in its software failure.
Longer-term support for CRWD stock sits at $300, where its 20-month moving average currently resides. Long-term investors will want to note that for an extreme buy the dip opportunity.
