In mid-2024, shares of American cybersecurity company CrowdStrike (NASDAQ: CRWD) plunged after a faulty software update disrupted industries worldwide, grounding flights, halting businesses, and affecting hospitals.
Now, less than a year later, investors who viewed the downturn as a buying opportunity are in profit as CrowdStrike stock has since rebounded.
On July 19, 2024, the day of the incident, CRWD closed at $304 per share as markets digested the fallout. As of May 24, 2025, the stock has surged to $455, marking a 49.6% increase in just over ten months.
An investor who bought $1,000 worth of CRWD stock on the day of the crash would now hold approximately $1,496, realizing a gain of nearly $497.
The recovery highlights CrowdStrike’s swift response to the outage and efforts to rebuild trust among key clients. While the initial disruption raised concerns, analysts have praised the company’s transparency and operational improvements.
CrowdStrike stock mixed outlook
On the other hand, Wall Street remains divided on the stock’s future. For instance, on May 22, Stifel analyst Adam Borg raised his price target from $435 to $480 and reiterated a ‘Buy’ rating ahead of CrowdStrike’s Q1 FY2026 earnings report, due June 3.
His note highlighted a fourth, and likely final, survey on the July outage, showing quarter-over-quarter growth among value-added resellers (VARs) using CrowdStrike solutions.
In contrast, Mizuho downgraded the stock on May 15 from ‘Outperform’ to ‘Neutral,’ maintaining a $425 price target. The firm cited slowing momentum among some partners and flagged risks, opting to wait for a more favorable entry point.
Amid mixed sentiment, CrowdStrike is taking steps to streamline operations. The firm recently appointed Brad Burns, formerly of Snowflake (NYSE: SNOW) and Salesforce (NYSE: CRM), as its Chief Communications Officer to enhance global messaging.
However, it also faces regulatory scrutiny over a $32 million transaction with Carahsoft Technology involving undelivered IRS software. At the same time, CrowdStrike plans to cut around 500 jobs, or 5% of its workforce, to improve efficiency while continuing to hire for key strategic roles.
Featured image via Shutterstock
