Fal.Con Europe Could Be CrowdStrike's Early Earnings Catalyst

Most companies' earnings reports are headline events. However, investors in CrowdStrike Holdings Inc. (NASDAQ: CRWD) may get the main event a few weeks early. CrowdStrike is getting ready to present its Fal.Con Europe event Nov. 4-6, roughly three weeks before CrowdStrike reports earnings.

This is an international version of the Fal.Con Las Vegas, which the company hosted in September. At that event, CrowdStrike debuted its Agentic Security Platform. According to the company, this platform “introduces the industry’s richest AI-ready data layer and expands agentic capabilities across the platform...”

Some features of the Agentic Security Platform include:

• Enterprise Graph – the platform’s richest AI-ready data layer, integrating telemetry and intelligence for actionable signals.

• Charlotte AI AgentWorks – a no-code platform for helping customers build, deploy, and orchestrate trusted security agents.

• Centralized Operating Center of the Agentic Ecosystem to coordinate human and machine defenders securely.

• An updated persona-aware user console for natural language queries, dashboards, and role-specific workflows.

The benefit to its customers is that it will unify data, intelligence, agents, and governance to secure and operationalize AI securely, intelligently, and at scale.

Fal.Con Europe Is an Extension, Not an Encore

It could be easy to think of Fal.Con Europe like part of a concert tour: the same or similar stagecraft with maybe a slightly different set list. However, with this event happening about six weeks after the initial event, CrowdStrike will likely have hard data to share about how the Agentic Security Platform has been received.

The event also comes shortly after a high-profile outage at Amazon Web Services (AWS), a reminder that even top cloud providers face reliability risks. For CrowdStrike, it underscores how essential resilient cybersecurity has become in an AI-driven enterprise world.

Innovation Justifies Valuation

CrowdStrike is achieving year-over-year revenue and earnings growth, it’s also continuing to capture market share with its Falcon platform. Both of those are bullish for CRWD stock.

However, if you view the stock as a three-legged stool, the valuation leg is the one that may cause some investors to get wobbly. The company’s current price-to-earnings (P/E), price-to-sales (P/S), and price-to-book (P/B) ratios are all expensive compared to CrowdStrike’s historical averages. It's even trading at a premium to some of the frothiest technology stocks. 

That's why it’s important to remember that CrowdStrike has only been publicly traded since 2019. It’s a young company. While CrowdStrike’s valuation metrics remain elevated compared to historical averages, its sustained earnings growth—analysts forecast 29% EPS growth in the next 12 months—supports a premium multiple.

Investors Should Watch for Evidence of Monetization and Market Adoption

The Fal.Con events illustrate CrowdStrike’s continued commitment to innovation. That kind of innovation is critical to show investors that it’s continuing to offer its customers a value proposition that extends beyond the subscription price.

But that kind of high-minded rhetoric has to show up in the company’s revenue and earnings. These Fal.Con events, first in Las Vegas and soon in Europe, are the ideal venues to share updates with investors before the company’s earnings report in late November.

Hold CRWD Stock Before Earnings But Look to Add on Weakness

CRWD stock closed around $499 on Oct. 22. During the past month, it has tried to break above the $500 mark at different times. Those efforts have met resistance, and the stock is now in a range with a bottom around the $477 mark.

That’s a nice consolidation above the stock’s 50-day simple moving average (SMA). Combined with a neutral RSI, CRWD stock is showing neither overbought nor oversold conditions.

The stock chart and modest volume show that investors are waiting for a catalyst to push the stock to a new all-time high. That pause is natural after the stock’s bullish run, which has been in place since December 2022, nearly three years.

That said, investors should be holding CRWD stock ahead of earnings. If the stock gets dragged down amidst the current market pullback, investors can safely buy on weakness. Conversely, investors should use a breakout above $510 to $515 supported by volume expansion and RSI momentum as a buying signal.

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The article "Fal.Con Europe Could Be CrowdStrike’s Early Earnings Catalyst" first appeared on MarketBeat.