Why CrowdStrike stock jumped 10% last month
Actions of CrowdStrike Holdings (NASDAQ: CRWD) jumped 10.8% last month, according to data provided by S&P Global Market Intelligence, after the announcement of the addition of the cybersecurity company to the Nasdaq-100 index.
This was seen by investors as a sign that CrowdStrike’s growth is bearing fruit and indicates that it is a leading tech company.
A place opened in the exclusive Nasdaq-100 when the semiconductor company Analog devices acquired Maxim integrated products. The addition of CrowdStrike to the index was announced on August 23; its share price jumped about 8% on the news.
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Many large institutional investors have funds that track the Nasdaq-100, and those funds had to add CrowdStrike shares to their holdings, which helped push up the share price.
In addition to being added to the Nasdaq-100, CrowdStrike is also now part of the Equalweight Nasdaq-100 Index and the Nasdaq-100 Technology Index.
CrowdStrike returned some of last month’s gains after releasing its second quarter results on August 31. Although it beat analyst consensus estimates for the quarter and raised its outlook for the full year, investors lowered its share price by 4% this month. But this short-term drop shouldn’t worry investors. The company is growing rapidly, posting impressive quarterly figures, and its stock has climbed 114% in the past 12 months.
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Chris Neiger has no position in the stocks mentioned. The Motley Fool owns stock and recommends CrowdStrike Holdings, Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.