Is CrowdStrike’s Rally on the Edge of a Correction?

Market Insight | Cybersecurity & Valuation Risk

CrowdStrike (CRWD) just delivered strong top-line results — beating expectations on revenue ($1.230B vs $1.214B) and EPS ($0.96 vs $0.94).

Yet, despite the impressive numbers, the market reaction signals caution:#StockMarket#

• GAAP net loss more than doubled — profitability pressure remains unresolved.

• Operating margins contracted despite 20%+ ARR growth.

• P/E ratio at 401.83 vs NASDAQ 100’s 34.71 — a valuation gap difficult to justify.

• Bearish price channel on D1, rising bearish volume, and negative divergence in momentum indicators.

With the NASDAQ showing bearish structure and volatility ahead of the FOMC rate decision, risk-reward may favour caution here.

The question for investors:

Is CRWD priced for perfection in a world full of uncertainty?

A pullback doesn’t invalidate the long-term cybersecurity megatrend — but extreme valuations leave little room for error.

Discipline > Euphoria.

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