Shares of cybersecurity company CrowdStrike (NASDAQ:CRWD) fell 5.1% in the morning session after the company announced a 5% cut to its workforce as part of efforts to stay more efficient using AI, though it planned to continue filling strategic roles in the current year. As part of the plan, the company expects to incur restructuring expenses, which could negatively affect its earnings in the year, and it is not clear if it will immediately offset the costs using its new efficiency plans.
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CrowdStrike’s shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 13 days ago when the stock gained 7.5% on the news that stocks extended their rebound, led by strong gains in the technology sector, as renewed optimism surrounding U.S.–China trade negotiations lifted investor sentiment.
Contributing to the bullish tone was a standout earnings report from enterprise software leader ServiceNow, which topped Wall Street’s expectations on both revenue and earnings. More importantly, the company’s remaining performance obligations (RPO), a key forward-looking metric for future revenue, also exceeded forecasts, giving investors confidence that enterprise customers are not pulling back spending amidst uncertain macro.
The optimism was further reinforced by solid results from Texas Instruments and Lam Research. Their performance was especially encouraging for semiconductor stocks, which have been under pressure due to their exposure to global trade tensions. These results suggested that, despite macroeconomic uncertainties, demand in key tech verticals remained resilient.
CrowdStrike is up 20.7% since the beginning of the year, and at $419.22 per share, it is trading close to its 52-week high of $455.36 from February 2025. Investors who bought $1,000 worth of CrowdStrike’s shares 5 years ago would now be looking at an investment worth $5,553.
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