CrowdStrike (NASDAQ:CRWD) stock has been on an incredible decline in recent days, triggered by a global outage that has grounded planes and disrupted major businesses. The culprit? A CrowdStrike update that crashed millions of Microsoft (NASDAQ:MSFT) systems. Shares dropped from around $390 in mid-July to a low around $260 this week. This has led bottom fishers to try and time the bottom. And Ark Invest CEO Cathie Wood appears to be one willing buyer of CRWD stock around these levels. And thus far, her bet looks to be directionally correct.
Wood reportedly picked up more than 20,000 shares of CRWD stock on Monday and nearly 40,000 shares on Friday. This puts her two-day bet at $17.1 million.
The question is whether Wood’s bet on CrowdStrike will ultimately be profitable. Let’s dive into this decision, and whether investors may want to follow suit.
CRWD Stock Higher Tuesday as Investors Pile In
The saying goes that the way to make money in the market is to buy low and sell high. Thus, when a stock dips by roughly one-third over the course of a week, investors looking for growth at a reasonable price certainly reason to step up and buy in.
The question is whether CrowdStrike will be able to turn the corner after a major shutdown and pave the way for greater confidence in its offerings to its existing and prospective clients. If it pulls this off, Wood’s bet could certainly pan out.
That’s a big if, however. I just don’t know what the ultimate effect of this issue will be on the company’s upcoming quarterly earnings, and it appears many in the market feel the same way. With this in mind I’ll be happily watching the price action from the sidelines for right now. Conservative investors should consider doing the same.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
