CrowdStrike Holdings (CRWD) shares tanked another 12% on Feb. 23 as the launch of Anthropic’s latest “Code Security” solution triggered a massive industry-wide selloff.
This AI disruption-driven selloff pushed CRWD’s relative strength index (14-day) well into the “oversold territory,” signaling bearish momentum may soon approach exhaustion.
Versus its year-to-date high, CrowdStrike stock is now down more than 25%.
Is It Worth Investing in CrowdStrike Stock Today?
Long-term investors should consider buying the dip in CRWD stock today as this whole narrative that artificial intelligence could render its business obsolete is vastly “overblown.”
If anything, the rise of sophisticated AI-powered attacks are, in fact, creating an urgent demand for CrowdStrike’s Falcon platform.
By integrating “agentic” artificial intelligence to automate threat detection, CrowdStrike Holdings has effectively positioned itself as an essential supplier in the cybersecurity arms race.
The launch of Charlotte AI and more than a billion dollars spent on recent acquisitions (SGNL and Seraphic Security) have cemented CRWD’s telemetry moat as a defensible barrier that generic AI tools simply can’t replicate.
Where Options Data Suggests CRWD Shares Are Headed
CrowdStrike’s chief executive George Kurtz also remains convinced that AI is unlikely to prove a threat for his company’s business.
“AI doesn’t eliminate the need for security. It increases it. If you want to build AI, you need GPUs, if you want to deploy AI, you need security,” he wrote in a LinkedIn post this past Sunday.
Simply put, the top executive believes artificial intelligence will expand the firm’s total addressable market (TAM) by creating advanced vulnerabilities that require a comprehensive platform to resolve
Options traders seem to agree with Kurtz’ bullish view as well. Upper price on contracts expiring mid-May sits at $405 currently, indicating CrowdStrike shares could rally some 17% in less than three months.
What’s the Consensus Rating on CrowdStrike Holdings?
Despite the recent AI-driven selloff, Wall Street analysts remain constructive as ever on Austin-headquartered CrowdStrike Holdings.
According to Barchart, the consensus rating on CRWD shares sits at “Moderate Buy” currently with the mean target of $555 indicating potential upside of more than 55% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
- Novo Nordisk Stock Is Deeply Oversold on Weight Loss Drug Fail. Should You Buy the Dip?
- Should You Buy Dell Stock Before February 26? This Analyst Says Yes.
- Everything You Need to Know About Musk’s ‘Self-Growing’ Moon City as He Races to ‘Secure the Future of Civilization’
- PayPal Has Attracted Takeover Interest. Does That Make PYPL Stock a Buy Here?
