Up Over 100% in 2026, Is CrowdStrike Still a Buy?
2026-10-25 18:42
•Keithen Drury •The Motley Fool
••••• • Axe Cap view
CrowdStrike’s 2026 Rally: Time to Take Profits?
CrowdStrike’s stock has doubled this year, but growth is slowing while valuation hits peak levels.
CrowdStrike’s shares have more than doubled in 2026, riding on the promise of strong cybersecurity demand and AI risk mitigation. Yet, behind the hype, growth is decelerating—from 25-26% revenue increases down to a projected 23% next year. What worries me is the price-to-sales ratio: it’s the highest since late 2021, when the company was expanding far faster. Paying a premium when growth slows is a classic warning sign. For South African investors, this isn’t just about US tech; a stretched US dollar to rand (USD/ZAR) can amplify losses if the story falters. If CrowdStrike stumbles, the rand could rally, putting pressure on local exporters and tech-linked names such as Naspers and Prosus, which often react to US tech sentiment. It’s a reminder that chasing spectacular gains without considering valuation can backfire. The call to take profits now isn’t just about this stock but the broader lesson of valuation discipline. this is just our opinion and not financial advice
Trim holdings of CrowdStrike if you have gains, and avoid adding new exposure for now. Keep an eye on USD/ZAR trends as a proxy for risk appetite affecting tech positions.
- CRWD
- USD/ZAR
- Naspers
- CrowdStrike accelerating growth more than expected
- US dollar weakening sharply, impacting USD/ZAR
6/10
CrowdStrike's stock has surged over 100% in 2026, but analyst Keithen Drury argues the gains are driven by hype rather than business fundamentals. While the cybersecurity company shows solid growth with 25-26% revenue increases, projected 23% growth next year appears insufficient to justify its current valuation. Trading at its highest price-to-sales ratio since late 2021, CrowdStrike's valuation now exceeds levels from when it was growing much faster, suggesting investors should consider taking profits.
Our take is based on reporting first published by The Motley Fool.