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.
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.
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.
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.