Up Over 100% in 2026, Is CrowdStrike Still a Buy?
The cybersecurity specialist's stock has done well, but its business is lagging.
In 2026, CrowdStrike (CRWD) has surged more than 100%, ranking as the 19th best-performing stock. This exceptional performance has some investors questioning whether the stock is now overvalued, considering its remarkable growth rate compared to its valuation. Cybersecurity remains a top concern as cybercriminals increasingly leverage AI tools to exploit system vulnerabilities.
CrowdStrike has positioned itself as a leader in this field, offering a comprehensive endpoint protection platform that learns to distinguish normal from abnormal usage patterns across various network access points. This capability enables the company to swiftly shut down potential threats before any damage occurs. CrowdStrike's product lineup consists of 32 modules that can be customized to cater to specific client needs.
Currently, 51% of its clients utilize at least six of these products, demonstrating the company's strong ability to upsell. Recent financial results have been impressive, with annual recurring revenue growing by 25% year-over-year in the fiscal 2027 second quarter and overall revenue increasing by 26%. Analysts project a 23% revenue growth for the upcoming year.
However, these growth figures raise concerns about CrowdStrike's valuation. The company has yet to achieve consistent profitability and is now one of the most expensive stocks in its public market history. This raises the question of whether the stock's recent performance is fueled more by hype than actual business metrics. With no signs of the situation improving anytime soon, some investors might consider taking profits from their CrowdStrike holdings and looking for alternative investment opportunities.
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