PANW - CrowdStrike Soars After Palo Alto's Plunge Downgrading CIBR

2024-03-08 00:26:32 ET

Summary

• CrowdStrike reported strong Q4 earnings, and shares soared following poor performance out of Palo Alto shares earlier in the reporting period.
• UnitedHealth Group's data breach has rekindled fears of ongoing digital attacks, causing concerns about cybersecurity stock valuations and technical momentum.
• I am downgrading the First Trust NASDAQ Cybersecurity ETF (CIBR) from a buy to a hold due to risks about valuations and technical readings.
• I highlight key price levels to watch in the months ahead.

CrowdStrike (CRWD) issued a gangbuster Q4 2024 set of earnings results. CEO George Kurtz remarked on the call that it was "...an exceptionally strong and record fourth quarter with net new ARR growth accelerating to 27% YoY, reaching a new high of $282M and ending ARR growing 34% YoY to reach $3.44B." The robust report and sanguine outlook came after its rival, Palo Alto Networks (PANW) disappointed investors the previous month....

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