CrowdStrike at All-Time High: Still a Buy, or Time to Trim?

CrowdStrike Holdings Inc. (NASDAQ: CRWD) is the kind of high-growth stock that investors love. It’s why they’ve been willing to pay a premium for the company’s stock. On Oct. 28, CRWD stock closed at $546.94, a new all-time high. The stock is up 59.8% in 2025 and 81% in the last 12 months. That run puts it among the best-performing large-cap technology stocks this year.

With the stock running up so far and so fast, it’s reasonable to wonder if there’s any gas left in the tank.

The argument that every company will need cybersecurity is accurate but incomplete. The digital economy is expanding—even more so because of artificial intelligence (AI)—and cyberthreats are escalating. But for many investors, that story and its growth feel priced in.

On the other hand, it’s equally simplistic to assume the stock will keep soaring on momentum alone. The trend may be your friend, but it doesn’t mean that it’s time to chase the stock higher.

Even a bullish endorsement from NVIDIA Corp. (NASDAQ: NVDA) chief executive officer (CEO) Jensen Huang, who recently called CrowdStrike a foundational partner in AI-driven cybersecurity, isn't a reason to buy CRWD stock at any price.

As legendary investor Benjamin Graham once said, “The market is a voting machine in the short run and a weighing machine in the long run.” CrowdStrike’s fundamentals remain strong, but its valuation has entered rarified air. Here’s a closer look at why growth investors may still have the upper hand, and why value-conscious investors may want to start taking profits.

Reason to Buy: CrowdStrike’s Growth Is Accelerating

CrowdStrike’s growth is real and accelerating. Over the last four quarters, the company has posted year-over-year (YOY) growth of 47.9%, 42%, 36.7%, and 35.3% respectively. That consistent growth is happening even as the company scales its business.

The company’s subscription-based model, anchored by its Falcon platform, continues to drive expanding annual recurring revenue (ARR), which topped $3.7 billion in the most recent quarter.

A key driver is customer expansion. CrowdStrike ended its latest quarter with more than 30,000 subscription customers, up 22% YOY. Not only is it adding customers, but existing clients are also spending more. The company’s net retention rate remains above 120%, signaling that customers are increasing their spending over time—an important metric for any SaaS business.

CrowdStrike’s modular product approach helps, too. The Falcon platform now includes over 20 modules that protect endpoints, cloud workloads, and identities—all integrated through its AI-driven threat graph. As cybersecurity threats evolve, many enterprise customers prefer a single, comprehensive vendor over managing multiple niche solutions. That dynamic continues to favor CrowdStrike’s land-and-expand strategy.

The company’s AI-driven analytics give it a further competitive edge. By collecting trillions of data points per week across global endpoints, CrowdStrike can identify threats faster than traditional security systems. The company’s Falcon X and Charlotte AI initiatives, which use large language models to automate detection and remediation, are helping drive operational efficiencies for customers and creating a new growth engine for the company itself.

Reason to Hold: A Lofty Valuation

Like many high-growth technology stocks, CrowdStrike is objectively expensive. It has a price-to-sales (P/S) ratio of over 31x. That’s several multiples higher than the broader software sector average. Even compared to other cybersecurity leaders like Palo Alto Networks Inc. (NASDAQ: PANW) or Zscaler Inc. (NASDAQ: ZS), CrowdStrike stands out.

Analysts are generally bullish, with over 80% rating the stock a Buy or Strong Buy. Still, even bullish models typically point to limited near-term upside unless earnings growth continues to surprise to the upside.

In other words, the company may be priced for perfection. Call it the Netflix effect. Netflix's long-term outlook looks solid, but investors didn’t get a “perfect” report, and NFLX stock is down 11%.

The same risk exists for CRWD stock when they report earnings in late November. Any sign of slowing ARR growth, contracting margins, or weaker customer additions could trigger a correction. With investors rotating selectively within tech, valuation could become a headwind in the months ahead.

That said, CrowdStrike’s balance sheet remains strong, with over $3 billion in cash and consistent free cash flow generation. Those fundamentals may provide some cushion if the broader market turns volatile. But for long-term investors, the question is whether future returns will justify today’s premium multiple.

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