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  • Writer's pictureRealFacts Editorial Team

CrowdStrike Soars as S&P 500 Inclusion Validates Cybersecurity Leadership

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This week, Jordan Novet, CNBC reporter quotes CEO George Kurtz saying, “This amazing milestone shows the hard work, dedication, and belief our team, customers, and partners have had since we started in 2011.” Following the announcement of its inclusion in the S&P 500, CrowdStrike saw its stock value surge by 7%, marking a significant achievement for the cybersecurity software company. This addition is part of a larger reorganization by S&P Dow Jones Indices, which also saw KKR and GoDaddy joining the index, replacing Comerica, Robert Half, and Illumina. These changes, set to take effect on June 24, led to a noticeable increase in stock prices as portfolio managers adjusted their holdings to include the newly added entities, driving demand for the newly listed stocks. Evercore analysts predict substantial market activity, estimating that index followers will buy around 30 million shares of CrowdStrike.

The market’s response to CrowdStrike’s inclusion was largely positive, with noticeable increases observed in security-focused exchange-traded funds (ETFs) such as the First Trust Nasdaq Cybersecurity ETF and the Amplify Cybersecurity ETF, known by the ticker “HACK,” both experiencing a 1.5% surge. This reaction highlights the market’s strong confidence in cybersecurity investments and underscores CrowdStrike’s growing prominence in the sector. With a track record of consistent profitability over the past five quarters and a market capitalization exceeding $90 billion, the company strengthens its significant market presence, preparing for the increased stature of being included in the S&P 500. CEO George Kurtz celebrated this milestone, attributing it to the hard work of the CrowdStrike team and their partners.

Leading up to this announcement, CrowdStrike had already been demonstrating strong financial performance. Earlier this month, the company announced a 33% year-over-year revenue increase, reaching $921 million, contributing to a notable increase in its stock value. This momentum, combined with a record-setting close on Monday, firmly establishes CrowdStrike as a leader in the cybersecurity industry. The stock has risen by 46% this year, following an impressive 142% increase in 2023. The addition to the S&P 500 not only marks a significant moment for CrowdStrike but also reflects the broader market’s recognition of the crucial role of cybersecurity in the digital age.


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