CrowdStrike (CRWD) is down about -2% in premarket trading to kick off the week, as Morgan Stanley downgraded the cybersecurity and software company to Equal Weight from Overweight but also raised its price target to $495 from $490. The firm sees a full valuation with the shares up 50% from the April lows. CrowdStrike still offers a compelling long-term story, but the expected second half of 2025 growth acceleration now looks well priced into the stock, the analyst stated. CrowdStrike shares recently retreated about -7.6% from their all-time highs of $517.98 on Jul. 3, with most of the drop coming from a sharp decline during the past two sessions.

Last quarter, CrowdStrike reported revenues of $1.10 billion, up 19.8% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company. Revenue guidance for next quarter also met analysts’ expectations. “We started the fiscal year with record Q1 large deal and MSSP momentum alongside sustained 97% gross retention and consistently strong net retention as the market consolidates on Falcon as its cybersecurity platform of choice for the agentic AI era,” said George Kurtz, Founder and CEO.

Other analysts also seem to be shifting their views on the company as well. CFRA last week downgraded CrowdStrike to Hold from Buy, but like Morgan Stanley chose to raise their price target – to $555 from $517 in this case. Meanwhile, Piper Sandler also downgraded CRWD last week, dropping their view to Neutral from Overweight and maintaining their $505 price target. The note said that while the firm remains bullish in its longer-term view, CRWD shares are already significantly up year-to-date and further upside could be limited in the shorter term.

The swoon off the highs last week saw price break downward through a shorter-term trendline beginning in mid-April as well as the 21-day Exponential Moving Average, which both aligned together near about 490 on Friday. This confluence is now a possible point to watch for resistance. Momentum also showed a similar downward breakthrough, with the Relative Strength Index (RSI) also breaking through its upward trendline in tandem with price. Additionally, the RSI closed below the 50-midline, which suggests a bearish shift in momentum.

Today’s premarket drop also points to price falling below the yearly Linear Regression Line, which is a line of best fit based on closing prices. The LRL closed near 475 on Friday, and now marks another potential resistance hurdle for price. For possible support, look to another confluence near the 455 level. This represents the old highs from February as well as the 63-day EMA. Volume also starts to drop off below the 460 level according to the yearly Volume Profile study, with the next spike in trading activity centered around the 430 level.

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