CrowdStrike Stock Slips After Strong Start — What Really Happened on April 28?
Cybersecurity giant CrowdStrike got off to a great start on April 28. After reporting solid earnings, its stock jumped early in the day — but by the afternoon, things had flipped. Instead of ending on a high note, the stock slid and closed lower. So what caused investors to suddenly change their minds?
Let’s discuss below the business problem and the strong business of the company.
CrowdStrike’s Business Is Still Strong
CrowdStrike makes cybersecurity software that helps businesses stay safe from hackers. And by all accounts, business is booming. In the most recent quarter, they pulled in over $1 billion in revenue, a jump of 25% from last year. They also brought in $1.07 billion in free cash flow for the year, which is a healthy sign that they’re making solid money.
Investors liked these numbers at first, and that’s why the stock popped early on April 28.
The Problem? Their Future Outlook Wasn’t as Bright
The issue wasn’t with what CrowdStrike already did — it was what they said about the future that caused the stock to fall later in the day.
The company gave guidance (a forecast) for the next few months, and it was lower than Wall Street expected. For example, analysts thought CrowdStrike would earn around $4.42 per share this year, but the company is only expecting around $3.33 to $3.45. That’s a big gap.
This made investors nervous. It raised questions like: Is growth slowing down? Is CrowdStrike spending too much? Are they losing ground to competitors?
The Stock Is pricey: So Expectations Are High
Another reason the stock dipped is that CrowdStrike is already expensive compared to other tech companies. It trades at a high price relative to its earnings. That means investors expect big growth — and any sign of weakness can cause a sharp reaction.
Competitors like SentinelOne are offering similar services at lower valuations, which adds pressure on CrowdStrike to keep proving it’s worth the premium.
What’s Next?
CrowdStrike is still a strong company, but it needs to calm investor nerves. That means proving it can keep growing, manage costs, and stay ahead in the fast-changing world of cybersecurity.
The April 28 dip was more about investor expectations than business failure — and how the company responds will matter more than ever in the months ahead.
