Here’s the reality: CrowdStrike just reported strong results—solid revenue growth, sticky customers, and a confident management tone.
But despite all that, the stock dropped over 6% in after-hours trading.
And it’s not because the business is weakening—it’s because when a company trades at a forward P/E above 140, the market demands perfection.
Anything less? It gets punished.
In this video, we’re unpacking CrowdStrike’s latest earnings, how it fits into the broader AI and cybersecurity narrative,
and whether this pullback is a gift—or a warning.
Valuation is where this gets serious. CrowdStrike currently trades at over 140x forward earnings.
For context, the S&P 500’s average is about 20x. Even among high-growth AI names, that’s extreme.
Analysts using discounted cash flow models—myself included—see intrinsic value closer to $190–$220.
With the stock recently priced around $480, it’s hard to argue there’s a margin of safety here.
Unless revenue and margin growth re-accelerate sharply, this multiple simply won’t hold.
