How Low Can CrowdStrike Stock Go In A Market Crash

CrowdStrike has a historical pattern of underperformance during major market crashes, consistently lagging behind the S&P 500. It declined by 68% during the Inflation Shock compared to the S&P’s 25%, fell 50% during the Covid pandemic versus 34%, and dropped 54% during the 2018 correction while the S&P fell 20%. On average, CrowdStrike’s declines reached 57%. The time to find a bottom varied: 14 months after the Inflation Shock, 1 month during the Covid pandemic, and 3 months in the 2018 correction. Recovery times were also inconsistent, taking 13 months after the Inflation Shock, 1 month post-Covid, and 7 months following the 2018 correction. This pattern reveals CrowdStrike’s vulnerability and high sensitivity to market downturns, highlighting a lack of resilience amidst volatility.

CrowdStrike Stock Performance In Market Crashes:

Worried that CRWD is yet to hit the bottom? You could take a look at the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.