CrowdStrike shares surge 8% to new record high
Shares in CrowdStrike surged more than 8% yesterday to a new record high after the cybersecurity stock received an investment bank upgrade. Analysts at Stifel are forecasting the stock to rally more than 25%.
Cybersecurity stocks have been in demand this year as ransomware attacks and hacks increase and become more sophisticated. However, the sector has become very competitive with new cybersecurity companies going public than ever before.
Since CrowdStrike went public in June 2019, the stock price has more than quadrupled, giving the company a very high price to earnings ratio. However, investors are currently happy to pay a high premium due to CrowdStrike’s strong positioning as a cloud-based cybersecurity company.
From a technical analysis perspective, it’s clear to see the overall uptrend in CrowdStrike’s share price since 2020. While the price has dipped in 2021, buyers have regained control.
If the price can stay above the previous all-time high around 248.00 then the share price could breakaway. However, a move back below here may see the stock continue to range trade.
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