After CrowdStrike Stock (NASDAQ:CRWD), a company in the industry, said that its Q4 sales outlook was lower than expected, cybersecurity exchange-traded funds were mostly down during Wednesday’s trading. Because of problems with the economy as a whole and the fact that customers take longer to buy things, the company also reported new subscriptions.
CRWD is held by 177 different ETFs, and according to ETF.com, the stock has a 9.48% portfolio allocation in the Simplify Volt Cloud and Cybersecurity Disruption ETF (NYSEARCA:VCLO), one of the fund’s largest holdings. The weighting of these ETFs was the highest available.
The company is also well-represented in the Listed Funds Trust TrueMark AI & Deep Learning ETF (LRNZ), which has a weighting of 8.43%; the Global X Cybersecurity ETF (BUG), which has a weighting of 7.71%; the First Trust NASDAQ Cybersecurity ETF (CIBR), which has a weighting of 6.02%; and the First Trust US Equity Opportunities ETF (FPX), which has a weighting of 5.32%.
In addition to their intraday performance on Wednesday, the following ETFs hold a lot of CRWD: VCLO -1.7% LRNZ -1.9% BUG -3.4% CIBR -2.3% FPX -0.7%
After the cybersecurity company predicted Q4 sales in the range of $619.1 million to $628 million vs. a consensus of $634.2 million, shares of the company fell more than 20%. Better-than-expected Q3 earnings were offset by disappointing guidance. In addition, the company forecasts non-GAAP EPS between $0.42 and $0.45 per share, beating predictions of $0.34.
An uproar of critical analyst comments followed the poor forecast. Stifel lowered the price target for the stock from $225 to $120 and changed its rating from buy to hold, while a number of other analysts kept the stock’s previous rating.
- From $275 to $200, Truist reduced the PT.
- From $200, the PT was decreased by RBC Capital to $165.
- From $225 to $165, Needham reduced the PT.
- The PT was decreased by Barclays from $180 to $155.
- From $230 to $150, Deutsche Bank reduced the PT.
Mizuho reduced the PT. CrowdStrike stock (NASDAQ:CRWD) sell-off from $205 to $175, which harmed other cybersecurity stocks such as Fortinet (NASDAQ:FTNT), CyberArk (NASDAQ:CYBR), Palo Alto Networks (NASDAQ:PANW), and Check Point Software (NASDAQ:CHKP). Over the course of a year, CRWD saw a 50% decline in its value.
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Author Jowi Kwasu 
