To The Moon

On 07 June 2024, S&P Dow Jones Indices announced that $CrowdStrike Holdings, Inc.(CRWD)$ will join the S&P 500 index on 21 June, following the stock's recent GAAP profitability.

After the announcement on 07 June, CRWD did have traded upwards on 10 June onwards, only until 21 June when the inclusion actually happened, we saw CRWD experiencing a drop to its low on 24 June (Monday).

This is quite far from the anticipation from analysts that despite macro and other factors, CRWD is expected to trade up on the news of its inclusion in the S&P 500 index.

Looks like the impact on CRWD stock price might be short-lived as we saw that CRWD traded rather sideway after 24 June.

In this article I would like to share on the price target estimate that I am working and see if there is potential on more upside in the long run for CRWD.

Analyst CRWD Stock Price Forecast

Based on 31 Wall Street analysts offering 12 month price targets for CrowdStrike Holdings in the last 3 months. The average price target is $399.96 with a high forecast of $435.00 and a low forecast of $350.00. The average price target represents a 4.38% change from the last price of $383.19.

If we looked at how CRWD has traded in last week, it looks like it is quite close to the average price target, so there might not be significant impact on the stock price movement forward.

If we followed the technical from the chart above, the MACD is showing a potential downside, and KDJ is not showing that it is making an upside movement soon. So we might not see a potential upside for CRWD upon its inclusion in the S&P 500.

Price Target Does Not Seem To Cross $400

Using the supertrend combined with target price, we are not seeing potential signal showing that CRWD could cross the $400 mark, as it is showing weakness with the light red bar and it is growing.

We need to see stronger demand (buying) happening for CRWD post the S&P 500 inclusion, though CRWD has been up by 23.5% for the month of June 2024, will we be able to see the same performance in July?

CRWD share price have been up 52% in 2024 till date. Shares rose steadily after a 34% revenue increase to $921 million and higher guidance for the year.

Summary

While we might be hyped up on CRWD on its S&P 500 inclusion on 24 June 2024, there have not been much significant movement despite the stock price rose steadily after the 35% revenue increases to $921 million and also the company offer higher guidance for 2024.

I would think that while the focus on AI has fueled CRWD share price growth since its 2019 IPO, we need to closely monitor the price action on trading session. There might be some impact on shorter term trading.

Appreciate if you could share your thoughts in the comment section whether you think CRWD stock price would rise in the long term following its S&P 500 inclusion.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.