CrowdStrike Analyst Dismisses Alphabet-Wiz Threat, But Retail Sees Some Risks

Alphabet, Inc. (GOOGL) (GOOG) recently confirmed its agreement to acquire privately held cloud security platform company Wiz for $32 billion in cash. However, the deal did not send shivers down the spine of Wiz's peer CrowdStrike, Inc. (CRWD).

Following a meeting with CrowdStrike CFO Burt Podbere, Jefferies analysts said the company viewed Alphabet's Wiz buy positively, The Fly reported. The executive opined that full integration of Wiz technology into the Google Cloud Platform will take time.

 Jeffries said CrowdStrike's agent offering is a competitive advantage compared to Wiz's agentless offering. The analyst also noted that Podbere expressed confidence in the second half of the fiscal year 2026's net new annual recurring revenue (ARR) and cash flow generation.

The analysts noted that the company prioritized the Falcon Flex platform, which allows customers to maximize their security investment with a flexible licensing agreement customized to meet their organization's needs. 

The brokerage also expects CrowdStrike to benefit from vendor consolidation due to budget constraints amid an uncertain macroeconomic environment. However, founder and CEO George Kurtz said the company is firmly on the flight path to its $10 billion ending ARR goal.

Jefferies has a 'Buy' rating and a $425 price target for CrowdStrike stock.

Earlier this month, the company reported a slowdown in fourth-quarter operational metrics and issued mixed guidance, sending its stock lower in the session that followed the print.

On Stocktwits, retail sentiment toward CrowdStrike stock stayed 'bearish,' and the message volume remained at 'extremely low' levels. 

A bearish watcher expressed dissatisfaction over CrowdStrike's what they perceived to be pricier valuation.

CrowdStrike stock trades at a forward price-earnings (P/E) multiple of 109 times, according to Koyfin.

The stock ended Thursday's session up 3.28% to $375.05, and it is up 9.6% year-to-date. 

The Koyfin-compiled consensus price target for CrowdStrike is $408.36, implying nearly 9% upside potential.

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