Investors Eye CrowdStrike and Amazon Amid Market Sentiment

Investors are watching CrowdStrike and Amazon as growth stocks face challenges. CrowdStrike's stock is down due to a weak outlook, while Amazon's AWS continues to drive profitability. Analyzing these trends could help guide investment decisions.

Date: 13-03-2025

AI Rating: 6

Stock Performance and Market Sentiment
CrowdStrike Holdings (NASDAQ: CRWD) has recently experienced a decline of 4% over the last three months, following a considerable 26% drop from its February record high. This decline is due to a weaker-than-expected outlook for fiscal year 2026 presented by the company, causing investor sentiment to sour.

CrowdStrike's dollar-based net retention stood at 112% in its fiscal fourth quarter, indicating healthy revenue growth, as existing customers increased their spending by 12% compared to the previous year. The company surpassed $1 billion in subscription revenue for the first time in its history, which showcases significant growth potential beyond current challenges.

Amazon’s Revenue Insights
Amazon (NASDAQ: AMZN), with a market cap exceeding $2 trillion, continues to show growth particularly in its AWS segment. The revenue growth from AWS was reported at 19% year over year, amounting to $107 billion in 2024, significantly contributing to the company's total operating income, which was $40 billion, increasing from $24.6 billion.

Even though AWS accounted for only 17% of Amazon's total revenue, it contributed to 58% of the operating income, indicating the segment's importance for profitability. Amazon's focus on AI infrastructure within AWS positions it well for sustained growth.

In summary, while CrowdStrike faces temporary setbacks, its customer retention and substantial revenue growth present a long-term investment opportunity. Meanwhile, Amazon's robust performance in AWS underscores its growth potential, making both stocks worthy of consideration for long-term investment strategy.

Stocks: AMZN CRWD