CrowdStrike Holdings, Inc. [NASDAQ: CRWD] is one of the biggest gainers pre-market. The stock is currently up by 16.43% to trade at $85. Volume is on the rise too, indicating that bullish sentiment in this stock is very strong at the moment.
Bullish sentiment in this stock is driven by its strong Q1 results. The company has reported earnings of roughly 96.1 million for its first quarter of the 2020 fiscal year. This is the first time that the company is making a public earnings report, after its successful IPO in June, when it raised about $612 million. Compared to the last financial year, the company’s revenues are up by about 103%. Breaking these numbers down, it is clear that CRWD is on a growth trajectory. Its subscription revenues now stand at roughly $86 million, representing an increase of about 116% from the last financial year.
Nonetheless, the company expects full-year losses of between 70 and 72 cents per share. But with its growing revenues, these numbers are likely to improve in the future. The company’s core strength, and key driving force, is cloud-native endpoint security. It is a pioneer in this field and according to the CEO, CRWD is said to be the only endpoint protection platform that is built from the ground up. This means it can provide full protection, while cutting on vulnerabilities with a single-agent architecture.
Looking at the price action, the key level to watch in the day will be yesterday’s high of $74.19. This could be a major resistance in the day. However, this resistance seems to have been broken in pre-market trading, and if the price holds above it when markets open, then it could be a bullish close to the week for CRWD.