CrowdStrike Holdings stock jumped Tuesday after Nasdaq announced that the security software company’s shares will be added to the Nasdaq-100 stock index.
CrowdStrike (ticker: CRWD) will replace the chip maker Maxim Integrated Product (MXIM), which is being acquired by Analog Devices (ADI). That deal is expected to close Thursday. CrowdStrike’s addition to the index will be effective with the opening of trading on Thursday.
CrowdStrike stock spiked 7.3% to $263.62 in recent Tuesday trading.
Nasdaq said CrowdStrike will also replace Maxim in the Nasdaq-100 Equal Weighted Index and the Nasdaq-100 Technology Index. Stocks tend to rally when added to widely tracked indexes, triggering mandatory purchases by the related index funds. In this case, that includes funds like the popular Invesco QQQ Trust (QQQ), an exchange-traded fund with close to $175 billion in assets.
CrowdStrike is a fast-growing provider of endpoint and cloud security software. For the fiscal first quarter ended April 30, the company posted revenue of $302.8 million, up 70% from the year-ago quarter. Annual recurring revenue was $1.19 billion, up 74%. On a non-GAAP basis, the company earned $23.3 million, or 10 cents a share in the quarter, up from 2 cents a year earlier.
The company plans to announce July quarter results on August 31. CrowdStrike previously projected revenue of $318.3 million to $324.4 million for the quarter, with non-GAAP earnings of 7 cents to 9 cents a share. CrowdStrike sees revenue for the January 2022 fiscal year of $1.347 billion to $1.36 billion, with profits of 35 to 41 cents a share.
Write to Eric J. Savitz at [email protected]
