CrowdStrike Earnings Beat Sparks Selloff—Buy the Dip? Shares of CrowdStrike Holdings Inc. CRWD were down about 4% the day after the cybersecurity company delivered what was, by fundamental metrics, a strong earnings report. For the first quarter of its 2027 fiscal year, CrowdStrike delivered a beat on the top and bottom lines and raised its guidance. Revenue of $1.39B was up 26% year over year (YOY). Adjusted earnings per share (EPS) of $1.10 was a gain of over 50% YOY. 51% of customers now use 6+ modules. Net new annual recurring revenue totaled $255.8 million. Record free cash flow hit $468.5 million. One of the report's strongest elements was the $6 million increase in annual recurring revenue (ARR) for the company’s Falcon platform. That was better than expected, but apparently not enough to satisfy investors. However, this appears to be a case where high-frequency trading platforms sell first and discern later. With CRWD up sharply in the last three months, algorithms were looking for a stronger number than they got. But if investors look past the noise, the outlook for CrowdStrike and other cybersecurity stocks is bullish. A Beat That Wasn't Enough To be fair, the selloff wasn't purely about CrowdStrike—it also reflected a market already on edge. CrowdStrike’s report came on a day when the market sold off on concerns over a re-escalation of hostilities with Iran, as well as a revenue miss by Broadcom Inc. AVGO that stoked concerns about a frothy artificial intelligence (AI) trade. Cybersecurity stocks aren’t immune to AI fears. The concern is that the current business models of companies, such as CrowdStrike, will be less viable in an AI-driven future. Specifically, that AI tools will allow companies to automate the tasks that once required cybersecurity products. If that’s the case, then the future valuation