Is It Too Late to Buy CrowdStrike?
No tech stock investor needs to be reminded of just how awful the sector has been. As the market transitioned to more defensive consumer staples due to rising interest rates, rampant inflation, and a stagnating economy, many previously high-flying tech stocks tumbled from their highs.
CrowdStrike (NASDAQ: CRWD) stock is down 31% from its November peak as the market rotated out of the sector, but business for the cybersecurity stock remains robust, which could be why it has bounced sharply higher off its lows.
Yet, with the Federal Reserve signaling it will take an aggressively hawkish stance on inflation -- St. Louis Fed president James Bullard says it's "fantasy" to think anything short of dramatic interest rate hikes that bring economic growth to a standstill will work -- the prospects of a recession may dent enthusiasm for CrowdStrike's cybersecurity solutions as even slow growth might make businesses hesitate to spend money. So, is it too late to buy this stock?
Source Fool.com
