CrowdStrike is campaigning for the inclusion of the company in the S&P 500

CNBC

CrowdStrike shares jumped 7% on Monday after an announcement that the cybersecurity software vendor was joining the S&P 500, replacing financial firm Comerica .
S&P Dow Jones Indices said in a statement late Friday that CrowdStrike was being added to the benchmark index, along with global investment firm KKR and web domain seller GoDaddy , which are taking the place of Robert Half and Illumina , respectively.
Evercore analysts said in a note to clients on Monday that its “trading desk expects indexers to buy ~30mn shares” in CrowdStrike.
Security ETFs gained on Monday, with the First Trust Nasdaq Cybersecurity ETF and Amplify Cybersecurity ETF — ticker symbol “HACK” — both climbing 1.5%.
CrowdStrike has been profitable in the five most recent quarters, meeting the requirement for inclusion in the S&P 500.
With a market cap of over $90 billion, CrowdStrike has more than double the valuation of the median S&P 500 company.
CrowdStrike’s surge on Monday pushed the stock to a record close and brought its gains for the year to 46% after a 142% jump in 2023.
Earlier this month, CrowdStrike reported a 33% increase in revenue from a year earlier to $921 million.

POSITIVE

Monday saw a 7% increase in CrowdStrike shares following the news that the cybersecurity software provider would be replacing Comerica in the SandP 500.

CrowdStrike, along with web domain seller GoDaddy and global investment firm KKR, which are replacing Robert Half and Illumina, respectively, are being added to the benchmark index, according to a statement released late Friday by S&P Dow Jones Indices. As of June 24, the modifications will be in force.

Due to the fact that fund managers who follow the index frequently adjust their portfolios to reflect the additions, shares of companies added to the benchmark frequently increase following the announcement. The “trading desk expects indexers to buy ~30mn shares” in CrowdStrike, according to a note sent by Evercore analysts to clients on Monday.

Tuesday saw gains in security exchange-traded funds (ETFs). The First Trust Nasdaq Cybersecurity ETF and Amplify Cybersecurity ETF, both with the ticker “HACK,” increased by 1.5 percent.

Having turned a profit in each of the last five quarters, CrowdStrike satisfies the criteria to be added to the S&P 500. With a market capitalization of more than $90 billion, CrowdStrike is valued at more than twice as much as the average S&P 500 company.

“This remarkable accomplishment is evidence of the perseverance, commitment, and faith our group, clients, and associates have demonstrated since our establishment in 2011,” CEO George Kurtz wrote in a LinkedIn post over the weekend.

After a 142% increase in 2023, CrowdStrike’s stock saw a record close on Monday, bringing its year-to-date gains to 46%.

CrowdStrike announced earlier this month that its revenue increased to $921 million, or 33 percent more than a year ago.

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