Investment Update: CRWD
Date: 2025-12-05 Event Type: News
Executive Summary
CrowdStrike faces mixed signals. The company is seemingly recovering from a major outage event earlier in the year, with positive sentiment surrounding upcoming earnings. However, institutional investor activity is split, with 1832 Asset Management significantly reducing its stake while Edgestream Partners L.P. increased its holdings.
Key Takeaways
- Point 1: The market is anticipating upcoming earnings to potentially alleviate concerns stemming from a significant service outage in July 2024. This suggests a potential recovery in confidence.
- Point 2: 1832 Asset Management L.P. significantly reduced their holding in CRWD, selling 73.7% of their shares. This could indicate concerns about CrowdStrike's performance or a shift in investment strategy.
- Point 3: Edgestream Partners L.P. increased their holdings in CRWD, signaling a positive outlook on the company's prospects. This suggests confidence in the company's future performance.
Thesis Impact
- Status: Weakened
- Reasoning: The mixed signals create uncertainty. While earnings may be positive, the large sell-off by 1832 Asset Management raises concerns. The outage from earlier in the year continues to cast a shadow, and it is unclear if the upcoming earnings will be enough to fully restore confidence.
Valuation Update
- Previous Fair Value: $350
- New Fair Value: $320
- Current Price: $300 (Assumed for this report)
Action Plan
- Decision: Hold
- Rationale: The conflicting signals necessitate a cautious approach. While the price is below our previous fair value, the uncertainties warrant waiting for more clarity on the earnings and the long-term impact of the outage. Further observation is needed before making a buy or sell decision.