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CrowdStrike: A Major Bear Throws in the Towel—Upside Ahead
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CrowdStrike: A Major Bear Throws in the Towel—Upside Ahead
Written by Sam Quirke on January 15, 2026

In Brief
- CrowdStrike has pulled back from record highs, but its longer-term uptrend remains intact, and momentum is turning higher again.
- A notable analyst upgrade has removed a long-standing note of caution, adding fuel to what’s already a broad bullish consensus.
- With earnings consistency and sector tailwinds still in place, it feels like the stock is setting up for the next leg higher.
Shares of CrowdStrike Holdings, Inc. (NASDAQ: CRWD) are quietly regaining their footing after a choppy few months. The stock is up roughly 35% over the past year but down about 17% from its all-time high in November. That pullback may look a little dodgy at first glance, but it has done little to damage the broader trend that has underpinned CrowdStrike’s rally for much of the past eighteen months.
Importantly, the recent weakness has not been driven by any fundamental breakdown. There was no earnings miss, no guidance cut, and no negative shock to the business. Instead, the slump appears to have been the result of fairly routine profit-taking after a strong run. As we move deeper into the new year, there are signs suggesting the bulls are already back in control, and the next leg of the rally is about to begin.
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Momentum Is Turning Back in Favor of the Bulls
From a technical perspective, the setup has been improving all month. CrowdStrike’s relative strength index (RSI) has been climbing up from oversold levels, indicating that selling pressure has been exhausted. At the same time, the MACD is on the verge of a bullish crossover, a signal that often precedes renewed momentum after a corrective phase.
Crucially, the longer-term uptrend remains intact. Higher lows continue to define the chart’s structure, suggesting the recent pullback was a routine pause rather than the start of a reversal. It helps that this is a stock with one of the strongest earnings track records in the cybersecurity space. CrowdStrike has consistently delivered results that beat expectations, which makes it easy for investors to remain confident even when a stock sells off. That reliability helps explain why buyers have been quick to step back in since the sell-off ran out of steam two weeks ago.
Analysts Are Almost Universally Bullish
Sell-side commentary has also remained overwhelmingly supportive. In the past month alone, the likes of BTIG Research, Citigroup, and Cowen have all reiterated Buy or equivalent ratings on CrowdStrike. Price targets from that group stretch as high as $640, implying upside of around 35% from current levels.
The most notable update, however, came from Berenberg Bank. The team there actually upgraded CrowdStrike from Hold to Buy, effectively throwing in the towel on its prior caution. They cited the stock’s more reasonable valuation following the pullback and highlighted the long-term benefits of recent acquisitions, like that of identity security platform SGNL.
That upgrade is significant because it reflects a firm shift in outlook rather than a simple reiteration. It suggests that valuation concerns, which had previously kept some analysts on the sidelines, have now eased enough to make the risk-reward attractive again.
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The Broader Bull Case Remains Intact
Beyond near-term price action, there is strong consensus among bulls that CrowdStrike’s growth potential remains undervalued. Many view the company as a second or third-order beneficiary of the AI revolution, with expanding demand for securing increasingly complex and automated environments.
The cybersecurity subsector itself continues to be seen as an outperformer within the broader technology space. As enterprises grapple with more sophisticated threats and higher regulatory expectations, security spend tends to remain resilient even when other IT budgets are under pressure. CrowdStrike’s status as a market leader means it’s well-positioned to continue gaining market share in the months and years ahead.
Not Everyone Is Fully Convinced
That said, the bullish narrative is not unanimous. This week, KeyBanc Capital Markets downgraded its rating on CrowdStrike to Sector Weight. The firm pointed to a more measured outlook for security budgets in 2026, lingering concerns about the stock’s premium valuation, and uncertainty regarding how quickly AI-driven security spending will materialize.
Even so, KeyBanc stopped well short of turning bearish. It acknowledged CrowdStrike’s strong strategic position as a consolidator of security spend and highlighted its leadership in emerging areas such as agentic security operations and securing AI workloads. In other words, the downgrade was about short-term timing rather than long-term risk.
It’s hard to argue that the bigger picture looks anything other than bullish right now. With technical momentum building, analyst conviction strengthening, and the business continuing to execute well, the recent pullback increasingly looks like a pause rather than a warning sign, which helps set the scene for another run higher.
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