CrowdStrike is defying Wall Street negativity on software, says Cramer. What he expects from earnings

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CNBC’s Jim Cramer said Wednesday he’s expecting a strong quarter next week from cybersecurity firm CrowdStrike despite some weakness in other corners of the enterprise software market. Investor sentiment around software has become downbeat, but CrowdStrike is “one company that seems to be immune” to the negativity, Cramer said. In recent days, two Wall Street analysts issued upbeat notes on CrowdStrike. “This company has yet to miss a quarter since it came public,” Jim said Wednesday. “That’s the last remaining domino, and I don’t think that domino is going to fall” when the company reports Tuesday. Shares of CrowdStrike are up more than 37% year to date, outpacing the S & P 500’s roughly 10.5% gain. CRWD YTD mountain CRWD stock performance year-to-date. Earnings reports last week from Workday and Intuit added to the questions about the demand environment for enterprise software. Alongside its fiscal 2025 first quarter earnings report last week, Workday cut its full-year forecast for subscription revenue. The maker of HR and payroll software said one reason for the change is companies watching their headcount growth. Elsewhere, TurboTax and QuickBooks owner Intuit issued softer-than-expected guidance for fourth-quarter earnings. Its third-quarter sales and profit per share topped expectations. Wall Street remains positive on CrowdStrike ahead of its earnings report. In a research note Tuesday, Morgan Stanley software analysts named CrowdStrike their top pick and increased their price target on the stock to $422 a share from $372. Analysts, who maintained their buy-equivalent rating, argued CrowdStrike is poised to surpass a $100 billion market value over the next 12 months, citing strong top line growth and durable free cash flow. On Wednesday, JPMorgan upped its price target on CrowdStrike to $400 a share from $371, contending the company is among the best positioned to capture share in its markets. The Investing Club’s choice for cybersecurity is Palo Alto Networks , which reported earnings last week. The stock initially tumbled on concerns around billings growth trends, though Club analysts called the sell-off a buying opportunity for long-term investors. Shares have been volatile since that earnings print, including a 4.2% drop in Tuesday’s session.