Though it started the year strong, CrowdStrike (NASDAQ: CRWD) experienced a stock market catastrophe when one of its software updates caused a global IT outage.
The event severely shook the firm’s reputation, and CRWD shares plunged approximately 42.9% from about $380 to near $217 between mid-July and early August.
By Thanksgiving 2024, the situation had drastically changed, and CrowdStrike not only showcased its recovery in the latest earnings report, but its stock gained enough positive momentum to flash a particularly bullish ‘buy’ signal by November 27 as it hit its press time price of $347.59.
CrowdStrike stock flashes first golden cross in 17 months
Specifically, late on Wednesday, the CRWD stock price chart flashed the so-called golden cross for the first time since June 2023.
The golden cross is a prominent signal in technical analysis that occurs when a short-term moving average (MA) – usually the 50-day MA – rises above a long-term MA – usually 200-day. It signals that a strong rally is likely imminent.
Looking at CrowdStrike shares’ previous flashing of this signal, they rallied as much as 140% in the subsequent nine months. Furthermore, considering the April 2024 dip was relatively brief, CRWD stock would have probably continued the long-term rally far beyond 140%.
Indeed, between June 2023 and July 2024 – the time of the global IT outage – CrowdStrike stock surged some 160% from about $150 to approximately $390.
Should the technology giant’s shares repeat such performance, they could reach as high as $830 by mid-2025.
Street experts stay conservative about CRWD shares
Finally, though the technical analysis and historical performance indicate an incredible rally for CrowdStrike shares in the coming 12 months, stock market experts are less enthusiastic.
Indeed, despite the technology giant reporting strong figures with its latest quarterly report – for example, beating forecasts and crossing $1 billion in revenue – recent analyst assessments were mixed.
The ‘buy’ ratings – provided by Needham, Citi (NYSE: C), Baird, and Oppenheimer – were accompanied by price targets ranging from $390 to $420. While all of these represent significant upsides, they are also substantially below the $830 extrapolated from the historical results of the previous golden cross.
Furthermore, some experts remained unconvinced by the latest report, and CrowdStrike received ‘neutral’ assessments from Scotiabank, HSBC, and BTIG, with some of the stock price forecasts going as low as $300.
Featured image via Shutterstock
Source: https://finbold.com/buy-alert-bullish-signal-hints-at-crowdstrike-stock-surge-to-800/