CrowdStrike Shares Plunge 6.45% as Analysts Trim Targets, Cite Valuation Concerns

CrowdStrike Holdings (CRWD) shares fell to their lowest level since May 2025 on Sept. 2, with an intraday decline of 3.78%. The stock has now dropped 6.45% over two consecutive sessions, marking a sharp reversal from its recent momentum despite strong product growth and revenue performance.

The pullback reflects a mix of valuation concerns and shifting analyst sentiment. While CrowdStrike’s Next-Gen SIEM business reported a 95% year-over-year ARR increase to $430 million in Q2 2025, analysts have trimmed price targets and issued warnings about stretched valuations. Truist Securities maintained a Buy rating with a $500 price target, but other firms, including Canaccord and Piper Sandler, cut their targets to as low as $430, signaling caution over short-term sustainability of growth.

Technical indicators reinforce the bearish pressure. CRWD’s RSI is in oversold territory at 38, yet the stock remains below its 50-day moving average of $459.45 and tests key support near its 200-day SMA of $412. A breakdown below this level could trigger further declines toward $400, while a rebound above $430 might attract buyers. Options activity highlights this volatility, with increased call open interest at $420–$450 strikes, though volume remains muted to confirm a reversal.

Investor sentiment is further clouded by mixed guidance. Despite exceeding Q2 earnings estimates, the stock fell 2.7% on Aug. 30 after a Seeking Alpha downgrade and concerns over underwhelming ARR growth guidance. Institutional investors have added to positions, but margin expansion forecasts from Cantor Fitzgerald and DA Davidson lack material surprises to drive conviction. Meanwhile, Bernstein and Rosenblatt Securities have issued pessimistic forecasts, with Bernstein setting a $343 price target as a floor.

Long-term fundamentals remain intact, with CrowdStrike’s AI-native platform and leadership in cybersecurity innovation cited as strategic advantages. Analysts at Wedbush and Oppenheimer maintain Outperform ratings with price targets up to $520, contingent on improved valuation metrics. However, the near-term outlook hinges on whether the market perceives the stock’s growth story as undervalued or overpriced, as critical support levels are tested in early September.