CrowdStrike Slides 10.1% as Trading Volume Ranks 78th Lags S&P 500s 3.5% Gains

On August 18, 2025, CrowdStrike Holdings (CRWD) closed at $426.34, down 0.36% with a trading volume of 2.096 million shares, ranking 78th in daily trading volume. The stock has underperformed the S&P 500, which gained 3.5% over the past month, while CRWD fell 10.1%. Analysts highlight earnings estimate revisions as a key factor, with the Zacks Consensus Estimate for fiscal 2025 at $3.5 per share, reflecting a 10.9% decline year-over-year. Despite stable revenue projections of $4.78 billion for the current fiscal year, the Zacks Rank #4 (Sell) suggests near-term underperformance due to weak earnings revisions.

CrowdStrike’s valuation remains contentious. The stock trades at a premium to peers, with a price-to-sales ratio of 25.48 and a forward P/E of 121.95. While revenue growth is robust—projected at 20.9% for the current fiscal year—profitability metrics remain mixed. The company reported a 25% year-over-year revenue increase in its latest quarter but maintains a -4.17% net profit margin. Analysts note that while AI-driven innovations like Charlotte AI and cloud security expansion present growth opportunities, the premium valuation leaves limited room for error, raising concerns about near-term volatility.

Analyst price targets range from $400 to $525, with an average of $468. However, the Zacks Rank’s bearish outlook contrasts with bullish themes, such as CrowdStrike’s leadership in endpoint security and expanding total addressable market. Challenges include maintaining high growth rates amid market saturation and competitive pressures. The company’s levered free cash flow of $1.31 billion provides flexibility for innovation but may not offset valuation concerns if growth expectations are unmet.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 yielded a 31.52% total return, with an average 0.98% daily gain. This indicates moderate short-term momentum but underscores market volatility and timing risks inherent in such strategies.