From Nasdaq: 2025-05-14 08:00:00

CrowdStrike Holdings Inc. (CRWD) closed the week down 7% due to a DOJ and SEC probe into a $32 million deal with Carahsoft. Despite this, technology stocks are rising on positive trade news between the US and China.

The regulatory probe regarding the Carahsoft transaction raises questions for shareholders. Investigators are ensuring proper accounting, with both CrowdStrike and Carahsoft defending the transaction’s legality.

CrowdStrike announced a 5% global workforce cut, causing some traders to question their investment. However, the company reaffirmed its revenue guidance and remains a leader in the cybersecurity industry, with a high operating margin and strong stock performance.

Options chain data suggests potential volatility ahead of CrowdStrike’s June 3 earnings report. Calls and puts purchased for June 6 indicate uncertainty, with traders anticipating significant movement in CRWD stock.



Read more at Nasdaq:: U.S. Regulators Target CrowdStrike: Is It a Signal or Noise?