CrowdStrike Looks Unstoppable-But Has the Market Priced It In?

CrowdStrike Holdings Inc. (NASDAQ: CRWD) is a clear leader in the growing cybersecurity space. Its Falcon platform is driving sustainable annual recurring revenue (ARR) growth as its customers continue to adopt more of the company’s modules. Analysts are projecting revenue growth of around 21% in 2025 and earnings growth of around 29% in 2026.

But like many technology stocks, CRWD stock has been selling off over concerns about valuation. CrowdStrike stock is down about 15% from its November peak. Shares hit a record close of $557.53 on Nov. 10 and climbed as high as $566.90 two days later, before pulling back. The stock has also slipped below its 50-day moving average, which has added to concerns about the near-term outlook for CRWD stock.

This creates a growth-at-what-cost scenario for investors. Cybersecurity demand is on the rise, but so is the competition. What may set CrowdStrike apart is its ability to align with partners to fuel its future growth.

The Growing Threat Matrix Is Driving Premium Valuations 

The cybersecurity sector is worth a premium price. According to Cybersecurity Ventures, cybercrime damages are expected to hit $10.5 trillion annually this year. That’s a massive jump from the $3 trillion in damages hit in 2015. Fortune Business Insights projects the global cybersecurity market will expand from $218.98 billion in 2025 to $562.77 billion by 2032.

The reasons are literally in the palm of our hands. The growth of connected devices, along with the ongoing proliferation of artificial intelligence (AI) tools, is expanding the threat matrix at an almost exponential rate. That means cybersecurity is a must-have, not a nice-to-have, on every organization’s balance sheet.

However, investors could argue they’re already paying a hefty premium for CRWD stock. Furthermore, the response from investors since CrowdStrike’s latest earnings report suggests that they believe a significant amount of that growth is already priced in.

CrowdStrike Partnerships Show Why Its Falcon Platform Is a Winning Strategy

In its third-quarter 2025 earnings report, CrowdStrike announced an expanded partnership with Amazon Web Services (AWS). This puts access to the company’s Falcon Next-Generation Security Information and Event Management (SIEM) directly inside the AWS Security Hub.

This will make it easier for AWS customers to start using Falcon SIEM. As CrowdStrike’s earnings reports have shown, once customers begin using its platform, they begin expanding into other areas as well.

CrowdStrike is also partnering with global system integrators such as Deloitte and Wipro to help win large enterprise customers that are looking to replace older security tools and consolidate them into one platform.

The takeaway for investors is that these partnerships, particularly the one with Amazon, have the potential to create a larger pool of users for CrowdStrike’s flywheel business model. CrowdStrike can turn these new users into paid subscriptions in its Falcon Flex model.

That would be a boost to CrowdStrike’s annual recurring revenue (ARR), which spiked 23% to $4.92 billion in its most recent quarter. That number included a record net new ARR addition of $265 million.

CRWD Stock in Consolidation Phase: What Should Investors Watch For?

CRWD stock recently broke below its 50-day simple moving average (SMA). This doesn’t reverse the long-term bullish trend, but it has put it on pause. The stock is now consolidating and is likely positioning itself for its next move higher.

Investors should watch the 50-day SMA as a solid target. If CRWD stock can break above that level and hold those gains, then the stock may be in line to hit the high end of analysts’ forecasts, which would put the stock at around $600 per share. That’s far above the consensus estimate of $555.10, about 14% above the stock’s current price.

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The article "CrowdStrike Looks Unstoppable—But Has the Market Priced It In?" first appeared on MarketBeat.