Cybersecurity Stocks Plummet Following Product Launch
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 24 2026
0mins
Should l Buy CRWD?
Source: Benzinga
- Severe Market Reaction: Following Anthropic's announcement of 'Claude Code Security' on February 20, cybersecurity stocks experienced a rapid decline, leading to a seven-week losing streak for the sector, represented by the First Trust Nasdaq Cybersecurity ETF (NASDAQ:CIBR), marking the longest downturn since 2015 and reflecting investor concerns about the industry's outlook.
- Product Impact Analysis: Although Bank of America analyst Madeline Brooks believes the market reaction may be exaggerated, she acknowledges that the launch of Claude Code Security has indeed shaken investor confidence in cybersecurity stocks, particularly given the tool's focus on pre-production code scanning, which could affect developers' security processes.
- Technological Advantages Remain: Brooks emphasizes that major cybersecurity platforms still possess structural advantages, collecting vast amounts of proprietary data from endpoints, networks, and cloud systems, providing visibility and real-time monitoring capabilities that AI tools cannot match, ensuring rapid threat response.
- Future Outlook: Despite the potential of AI tools to enhance security, Brooks argues that they serve more as augmentation layers rather than platform replacements, highlighting that diversified cybersecurity vendors remain best positioned in complex environments and will continue to maintain competitive strength in the future.
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Analyst Views on CRWD
Wall Street analysts forecast CRWD stock price to rise
34 Analyst Rating
23 Buy
11 Hold
0 Sell
Moderate Buy
Current: 384.860
Low
353.00
Averages
559.71
High
640.00
Current: 384.860
Low
353.00
Averages
559.71
High
640.00
About CRWD
CrowdStrike Holdings, Inc. is a global cybersecurity company that provides cloud-delivered protection of endpoints, cloud workloads, identity and data. Its Falcon platform is designed for cybersecurity consolidation, purpose-built to stop breaches. The platforms collect and integrate data from across the enterprise, including endpoints, cloud workloads, identities, and third-party sources. It offers 29 cloud modules on its Falcon platform via a software as a service (SaaS) subscription-based model that spans multiple large markets, including corporate endpoint and cloud workload security, managed security services, security and vulnerability management, information technology (IT) operations management, identity protection, next-generation security information and event management (SIEM) and log management, threat intelligence services, data protection, SaaS security posture management, automation and response (SOAR) and artificial intelligence powered workflow automation, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Earnings Forecast: CrowdStrike is set to report earnings after the close, and as a provider of cloud-based cybersecurity solutions, its CEO George Kurtz is renowned for combating cyber terrorism, underscoring the company's significance in the industry.
- Competitive Pressure: Despite CrowdStrike's strong performance in cybersecurity, its price-to-earnings multiple has been compressed due to competition from AI platforms like Anthropic, reflecting a market reassessment of its valuation that may impact investor confidence.
- Investment Outlook: While CrowdStrike is viewed as a potential investment, analysts believe that certain AI stocks offer greater upside potential and carry less downside risk, suggesting that investors should proceed with caution in their selections.
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- Stock Volatility: Berkshire Hathaway's A-shares closed at $721,044.89 and B-shares at $481.36, reflecting an 11% decline from their peak, indicating the impact of market uncertainty on its stock performance.
- Long-term Performance: Over the past five years, Berkshire's A-shares have appreciated approximately 89%, outperforming the S&P 500's 78% gain during the same period, showcasing its relative strength in the market.
- Employment Data Expectations: The U.S. is expected to add 48,000 jobs, with ADP employment data set to be released at 8:15 a.m., which could significantly influence market sentiment.
- Industry Dynamics: CrowdStrike's CEO will discuss cybersecurity issues on
See More
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- Adjusted EPS Beat: The adjusted earnings per share (EPS) for the quarter was $1.12, exceeding the analyst estimate of $1.10, reflecting the company's sustained profitability, although shares dipped slightly in after-hours trading.
- Annual Recurring Revenue Surge: The net new annual recurring revenue totaled $331 million, above the analyst forecast of $304 million, representing a 47% year-over-year growth, marking a successful expansion in customer relationships and revenue stability.
- Optimistic Outlook: Management forecasts revenue for FY2027 to be between $5.87 billion and $5.93 billion, exceeding the FactSet consensus estimate of $5.86 billion, showcasing confidence in future growth driven by AI technology demand.
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- Quarterly Revenue Growth: CrowdStrike reported a 23% year-over-year increase in total revenue for Q4, reaching $1.31 billion compared to $1.06 billion last year, indicating strong demand and market share expansion in the cybersecurity sector.
- Return to Profitability: The company achieved a net income of $38.7 million in Q4, or $0.15 per share, contrasting with a net loss of $86.3 million, or $0.35 per share, in the prior year, marking a significant improvement in profitability.
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- Widened Net Loss: Despite revenue growth, CrowdStrike's annual net loss widened to $162.5 million, or $0.65 per share, compared to a net loss of $15.2 million last year, indicating cost pressures faced during expansion.
See More
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- Protests Escalate: Hundreds of Iraqi Shiites protested in Baghdad against U.S. and Israeli strikes on Iran, indicating a rise in regional tensions that could lead to larger conflicts and instability.
- Increased Cyberattack Risk: Cybersecurity experts warn that Iran may launch attacks on U.S. businesses and infrastructure at a high-risk moment, highlighting the rising potential for cyber threats against critical sectors.
- CISA Challenges: The Cybersecurity and Infrastructure Security Agency (CISA) faces significant challenges due to a partial government shutdown and management reshuffle, resulting in staff shortages and resource constraints that may weaken its ability to counteract cyber threats.
- Financial Sector Vigilance: JPMorgan Chase's CEO noted that banks could be targets for cyberattacks, anticipating an increase in global cyber or terrorist threats, which underscores the financial industry's heightened focus on cybersecurity.
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