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NASDAQ:CRWD – CrowdStrike To Join S&P 500 Index, Stock Price Bounces

Analyst Team trader
Updated 10 Jun 2024

The cybersecurity world saw significant market movement as CrowdStrike Holdings stock (NASDAQ: CRWD), a leader in cloud-delivered endpoint and cloud workload protection, announced its upcoming inclusion in the S&P 500 index. Effective June 21, CrowdStrike will be a part of the prestigious index, reflecting its recent achievement of GAAP profitability.

Crowdstrike shares trade up more than 5.8% in the pre market session today after bounding in Friday's post market as the news begun to filter through. The stock has added 14% over the course of the last trading week.

This move is part of the S&P 500's quarterly rebalancing, an exercise that frequently updates the index to capture the evolving market dynamics and the performance of constituent companies. The inclusion signifies CrowdStrike's improved fundamentals, marking it as a company with increased trust and prominence among investors.


Analysts at JPMorgan have spotlighted CrowdStrike's strategic advancement in both growth and operating efficiency over the recent years. This progress has been key in elevating CrowdStrike's stature in the financial markets to the level worthy of inclusion in the S&P 500—a benchmark index for top-performing U.S. companies.

Analysts anticipate CrowdStrike's entry into the S&P 500 to positively impact its stock price. Specifically, there is an expectation of an immediate gain of around 5.6% following the inclusion. Confirmation of this bullish outlook was evident in the company's share performance during premarket trading on Monday, with CRWD shares up by 5.2% right after the announcement.

The cybersecurity firm's success is a reflection of the current high demand for robust cyber defences amidst the rising tide of digital threats. CrowdCanes, the company's flagship platform, utilises artificial intelligence to analyse threat data, and its growth prospects have evidently resonated with the market.

Moreover, CrowdStrike won't be the only new entrant in the S&P 500. Alongside it, KKR & Co., a private equity giant, and GoDaddy, a leading web host, will also join the index. The introductions acknowledge the changing contours of the business landscape, where technology, cybersecurity, and online markets are taking centre stage.

The revision of the S&P 500 index members provides a refreshed look at the companies that represent the U.S. market's leading edge. For CrowdStrike, this represents a seal of approval on its business model and financial health. As the company takes its place among the giants of industry, all eyes will be on its continued performance and its role in shaping the cyber security industry's future.

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The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.