Why CrowdStrike Holdings, Inc. (CRWD) Went Down on Wednesday

Insider Monkey
03-06

We recently compiled a list of the 10 Stocks Defy Market Optimism as Investor Caution Lingers. In this article, we are going to take a look at where CrowdStrike Holdings, Inc. (NASDAQ:CRWD) stands against the other stocks.

The stock market stood its ground on Wednesday, with all major indices eking out gains as President Donald Trump softened trade restrictions for three large automakers, reviving hopes that the trade war may not be as bad as it seemed.

The Dow Jones grew 1.14 percent, the S&P 500 rose by 1.12 percent, while the tech-heavy Nasdaq jumped 1.46 percent.

On Wednesday, the White House granted three large automakers a one-month exemption from tariffs after a call with the president, sending their share prices higher during the session.

Ten firms, however, bucked an overall optimism, recording modest declines during the past trading session. In this article, we have listed the 10 names and detailed the reasons behind their performance.

To come up with Wednesday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

Security personnel at their consoles, monitoring a global network of threats in real-time.

CrowdStrike Holdings, Inc. (NASDAQ:CRWD)

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) saw its share prices decline by 6.34 percent on Wednesday to close at $365.44 apiece following disappointing earnings results in the fourth quarter and fiscal year 2025.

In the latest quarter ending January 31, 2025, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) swung to a net loss of $92 million from a $53.7 million net income in the same period a year earlier, while revenues grew by 25 percent to $1.058 billion from $845 million year-on-year.

The company also registered a net loss of $16.6 million in fiscal year 2025, a reversal from the $90.6 million net income registered a year earlier, while revenues grew by 29 percent to $3.95 billion from $3.05 billion in the same comparable period.

Overall CRWD ranks 3rd on our list of Wednesday's worst performers. While we acknowledge the potential of CRWD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRWD but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

 

Disclosure: None. This article is originally published at Insider Monkey.

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