CRWD Stock Tumbles In Cybersecurity Rout — What Is Wall Street Saying?

Stifel lowered its price target on CrowdStrike to $480 from $600 and kept a ‘Buy’ rating on the shares.

• Last week, Anthropic announced a new AI security feature in Claude, sending cybersecurity stocks down.
• However, Dan Ives, managing director at Wedbush Securities, noted in a social media post that Anthropic’s Claude Security is actually an opportunity for cybersecurity companies. 
• CRWD shares have a 12-month average price target of $543.06, based on estimates from 53 analysts, according to Koyfin data.

Shares of Crowdstrike Holdings Inc. (CRWD) declined nearly 11% on Monday, extending their fall from last week after Anthropic announced a new security feature in Claude AI to scan code for vulnerabilities and suggest targeted fixes.

However, Dan Ives, managing director at Wedbush Securities, noted in a social media post that Anthropic’s Claude Security is actually an opportunity for companies like Crowdstrike, Palo Alto Networks Inc. (PANW), and Zscaler Inc. (ZS).

Meanwhile, Stifel lowered its price target on CrowdStrike to $480 from $600 and kept a ‘Buy’ rating on the shares, according to TheFly.

The Claude Opportunity

In a post on X on Monday, Ives said that Anthropic’s code tool that is targeted at the cybersecurity market is a validation of the firm’s thesis that cybersecurity is the next frontier for the AI Revolution.

He also added that Claude would not replace security vendors, but would open an opportunity for them. “Based on all checks Claude will not replace vendors….BUT speaks to oppy on doorstep for PANW, CRWD, ZS,” Ives said, essentially dismissing the selloff in the market.  

Meanwhile, Stifel’s downgrade comes ahead of Crowdstrike’s fiscal fourth-quarter (Q4) earnings expected on March 3. The firm said that after the previous quarter, it surveyed 25 of the company’s resellers about their quarterly results and expectations for the year, with results indicating that the quarter marked a second consecutive period of modest improvement, with a higher share of VARs meeting expectations at the very least.

Meanwhile, CRWD shares have a 12-month average price target of $543.06, based on estimates from 53 analysts, according to Koyfin data. Of those covering the stock, 37 have a rating of ‘Buy’ or more or the company’s shares.

What Is Retail Saying?

On Stocktwits, retail sentiment around CRWD shares jumped from ‘bullish’ to ‘extremely bullish’ over the past 24 hours amid ‘extremely high’ message volumes.

One bullish user said that more AI would create the need for more cybersecurity.

CRWD stock has declined more than 11% in the past year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<

Also Read: Nvidia Teams Up With Top Firms To Bring AI-Driven Push To OT Cybersecurity