Please ensure Javascript is enabled for purposes of website accessibility

Why CrowdStrike Stock Jumped 10% Last Month

By Chris Neiger – Updated Sep 8, 2021 at 12:16PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company's stock spiked after being added to the Nasdaq-100.

What happened

Shares of CrowdStrike Holdings (CRWD -0.06%) jumped 10.8%  last month, according to data provided by S&P Global Market Intelligence, after it was announced that the cybersecurity company would be added to the Nasdaq-100 index. 

This was taken by investors as a sign that CrowdStrike's growth is paying off, and is an indication that it's a top technology company

So what 

A spot opened up in the exclusive Nasdaq-100 when semiconductor company Analog Devices acquired Maxim Integrated Products. The addition of CrowdStrike to the index was announced on Aug. 23;  its share price jumped about 8% on the news. 

A man looking at a computer.

Image source: Getty Images.

Many large institutional investors have funds that track the Nasdaq-100, and those funds had to add CrowdStrike shares to their holdings, which helped drive up the stock price.

In addition to being added to the Nasdaq-100, CrowdStrike is also now part of the Nasdaq-100 Equal Weighted Index and the Nasdaq-100 Technology Index.

Now what 

CrowdStrike gave back some of last month's gains after it reported its second-quarter results on Aug. 31. Though it beat analysts' consensus estimates for the quarter and raised its outlook for the full year, investors have pushed down its stock price by 4% this month. But that short-term dip shouldn't worry investors. The company is growing fast, putting up impressive quarterly figures, and its stock has spiked by 114% over the past 12 months. 

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends CrowdStrike Holdings, Inc. The Motley Fool has a disclosure policy.

Stocks Mentioned

CrowdStrike Stock Quote
CrowdStrike
CRWD
$124.00 (-0.06%) $0.07
Analog Devices Stock Quote
Analog Devices
ADI
$168.63 (-1.22%) $-2.09
Maxim Integrated Products Stock Quote
Maxim Integrated Products
MXIM

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.