CrowdStrike Holdings, Inc. (CRWD) is gearing up to report its fiscal year 2024 second-quarter earnings after the market closes on August 28th. Analysts are projecting earnings per share (EPS) of 97 cents and revenue of $957.649 million. However, the company is also facing a legal challenge from Delta Air Lines (DAL) which claims a system outage caused by CrowdStrike cost the airline $380 million in revenue and other damages. Delta’s CEO, Ed Bastian, stated, “An operational disruption of this length and magnitude is unacceptable, and our customers and employees deserve better. We are pursuing legal claims against CrowdStrike and Microsoft to recover damages caused by the outage, which total at least $500 million.” CrowdStrike’s legal representation has countered, stating that CEO George Kurtz reached out to Bastian offering assistance but did not receive a response.
In the wake of the legal action, several analysts have adjusted their price targets for CrowdStrike stock. Morgan Stanley’s Hamza Fodderwala maintained an Overweight rating but lowered the price target from $360 to $325. Goldman Sachs’ Gabriela Borges also kept a Buy rating but decreased the target from $400 to $295. BMO Capital’s Keith Bachman retained an Outperform rating with a reduced target from $410 to $290. Lastly, Bernstein’s Peter Weed maintained an Outperform rating while lowering the target from $381 to $315.
For investors seeking exposure to CrowdStrike, options include purchasing individual shares through a brokerage platform or gaining access through an exchange-traded fund (ETF) that holds CrowdStrike stock. ETFs often track specific sectors, such as the Information Technology sector where CrowdStrike operates, offering investors diversified exposure to trends within that segment.
CrowdStrike’s stock price is currently up 1.42% at $266.27 as of Monday morning. The upcoming earnings report and the ongoing legal battle with Delta will likely be key factors shaping the stock’s trajectory in the coming weeks.
