CrowdStrike's market capitalization took a hit in recent times, dropping from over $200 billion to around $140 billion in a matter of months.
This significant decline in market value is largely attributed to the company's disappointing quarterly earnings report.
In Q4 2022, CrowdStrike's revenue growth slowed down, falling short of analysts' expectations.
As a result, investors lost confidence in the company's ability to sustain its growth trajectory, leading to a sell-off in the stock.
The stock price dropped by over 25% in a single day, wiping out billions of dollars in market value.
CrowdStrike Shares Fall on Weak Revenue Guidance
CrowdStrike shares fell about 5% in extended trading on Tuesday after the security software maker issued a weaker-than-expected revenue forecast.
The company's revenue forecast for the current quarter was $1.14 billion to $1.15 billion, which was lower than the $1.16 billion expected by analysts.
Costs rose in sales and marketing as well as in research and development and administration, partly because of a broad software outage last summer.
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CrowdStrike bumped up its guidance for full-year earnings but maintained its expectation for revenue, seeing $3.44 to $3.56 in adjusted earnings per share.
Here's a comparison of CrowdStrike's guidance and the LSEG consensus:
The company also announced that it had earmarked $1 billion for share buybacks, with CEO George Kurtz saying "Today's announced share repurchase reflects our confidence in CrowdStrike's future and unwavering mission of stopping breaches."
Market Cap and Share Value
CrowdStrike's market cap took a massive hit, plummeting $12.5 billion in the wake of the global outage.
The company's stock price opened down 15% on July 19, wiping out a significant chunk of its value.
This represents a $12.5 billion loss in market cap, a staggering figure that's sure to send shockwaves through the financial community.
The share price has decreased 16.69% over the last five days and 16.82% over the month, according to MarketWatch's price tracker.
CrowdStrike shares opened at $294.51 on July 19, a significant drop from the previous day's closing price of $343.05.
The company's market cap has taken a beating, with the stock price hovering between $308.70 and $309.19 at the time of writing.
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