Jim Cramer Doubles Down On CrowdStrike Despite Drop: 'Analysts Who Were So Negative…Had It Wrong'

Jim Cramer voiced support for CrowdStrike Holdings Inc. CRWD on Wednesday, challenging bearish analysts by purchasing shares for his Charitable Trust despite the cybersecurity firm’s recent stock decline.

What Happened: “We bought some Crowdstrike today for the Charitable Trust thinking the analysts who were so negative today had it wrong,” CNBC’s Cramer wrote on X, inviting viewers to watch his interview with CEO George Kurtz.

During the interview, Kurtz painted a concerning picture of today’s cybersecurity landscape, noting that geopolitical tensions are driving increased threat activity. “Adversaries get more active, nation state adversaries get more active, and certainly in the confusion of that, you have the e-criminals that come out,” he told Cramer.

Kurtz revealed that hackers can now breach and navigate systems in just 51 seconds, a speed unprecedented in the company’s experience. He also described sophisticated schemes by North Korean hackers who apply for remote jobs at well-known companies, receive company laptops, and redirect them to “laptop farms” controlled by North Korean operatives.

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Why It Matters: The CrowdStrike CEO highlighted how agentic AI is creating demand for new cybersecurity solutions, comparing it to previous technology cycles that necessitated enhanced security measures.

Despite beating analyst expectations with fourth-quarter revenue of $1.058 billion and adjusted earnings of $1.03 per share, CrowdStrike shares fell over 6% Wednesday following soft earnings guidance. The company expects first-quarter adjusted earnings of 64-66 cents per share, below analysts’ 95-cent estimate.

On the earnings call, Kurtz described the company as a “comeback story” following last year’s major global outage, pointing to strong momentum in cloud security and identity protection businesses that now exceed $1.3 billion in combined annual recurring revenue

Price Action: CrowdStrike closed at $365.44 on Wednesday, down 6.34%. After hours, it rose 0.13% to $365.90. The stock is up 5.21% year to date and 22.81% over the past year, according to data from Benzinga Pro.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.