CrowdStrike is a buy, just not yet. Here's why

CrowdStrike on Wednesday evening reported better-than-expected quarterly results and better-than-expected forward guidance, only to see its near-record-high stock sell off. The hot money that got in, looking for a Hewlett Packard Enterprise or Dell type post-earnings surge , no doubt booked profits, sending shares down more than 11% to around $664 each. Let them sell. We're not short-term thinkers. Revenue in CrowdStrike's fiscal 2027 first quarter increased 26% year over year to $1.39 billion, exceeding the 1.36 billion consensus estimate, according to LSEG. Adjusted earnings per share (EPS) surged 51% to $1.10 in the quarter ended April 30, ahead of the $1.07 estimate, LSEG data showed. CRWD YTD mountain CrowdStrike YTD On top of the beat-and-raise, CrowdStrike announced a 4-for-1 stock split, with trading on a split-adjusted basis expected to begin on July 2. We're increasing our price target to $750 per share from $650, while maintaining our hold-equivalent 2 rating to give the stock time to settle before we consider calling it a buy. CrowdStrike shares closed at a record high of $782 on Monday. Bottom line Putting the shortsighted stock reaction aside, which we also saw after Tuesday evening's Palo Alto Networks earnings, CrowdStrike's strong report added to the body of evidence that artificial intelligence adoption is not a threat to the cybersecurity business, but rather a boon. …