Beyond the 4-to-1 split, it's important to lead

Company CrowdStrike Holdings Inc. NASDAQ: CRWD is up nearly 45% in 2026, making it one of the best performing stocks of 2026. However, CRWD is down about 10% since strong earnings were reported on June 3rd.

That dip comes even though the company's board approved a 4-for-1 stock split. Stockholders of record as of June 25 will receive three additional shares for every share they own, and the stock is expected to begin trading on a split basis on July 2.

Stock splits can indirectly increase shareholder value, but in and of themselves, should not be a reason to buy or sell a stock. Instead, investors should look at the company's fundamentals and valuation.

CrowdStrike Just Delivered A Strong Report

It's hard to overstate the power of CrowdStrike's latest earnings report. The cybersecurity company is hitting high and low. Revenue of $1.39 billion was up 26% year-over-year (YOY). Earnings per share (EPS) growth is even stronger as the company's $1.10 is up 51% YOY.

A key metric for cybersecurity companies is annual recurring revenue (ARR). CrowdStrike's Falcon platform has a large flywheel effect where companies sign up for one or more services and not only continue to use those services but also add additional modules over time. This is the main reason why the company increased the total new ARR growth index for the current financial year by 520 points to 27.7%.

Look Beyond the Divide: What Really Supports CRWD

Simply put, there is a difference between price and value. A stock split doesn't change the company's valuation, so the fact that CrowdStrike will soon trade at a more affordable price won't make the stock a better value than it was before the split.

And on common valuation metrics—price-to-earnings (P/E), price-to-sales (P/S), and price-to-book (P/B)—CRWD looks expensive, so investors focused on those measures may find better options elsewhere. The bull case for a stock depends less on being cheap and more on other factors.

One of these is that the company is betting on itself. CrowdStrike recently announced a $500 million increase in its previous funding, bringing the new funding to nearly $1.5 billion. Companies don't raise buyout authorizations without free cash flow (FCF) to back it up.

Other index memberships. CRWD is part of the S&P 500 index, and was the fastest cybersecurity company to achieve that milestone. It also means that the stock is included in many of the largest technology and cybersecurity-focused exchange-traded funds (ETFs) and index funds. More than 71% of the shares are owned by institutions.

The takeaway for investors: a high share price doesn't seem to be keeping people away from the stock.

Why You Shouldn't Drop The Split

The split won't change CRWD's valuation, but it may change how investors react to the stock—and with more investors selling into the market than ever before, that psychology is important.

Many retail investors prefer not to own fractional shares, although the option is available to them. For those investors, seeing CRWD trade for less than $200 is likely to hold much more appeal. That's especially true for growth-oriented investors. CrowdStrike does not pay a dividend, so aside from acquisitions, stock price appreciation is the primary compensation for shareholders.

To be clear, none of this is the “right” reason to buy CRWD—distribution does not create real value. But markets don't work well, and sometimes how investors feel about value is as important as the underlying valuation.

Consciously Magnificent Chart

CRWD is trading around $690, well extended above its 50-day simple moving average (SMA) at $571.48. That gap indicates strong momentum, but also high short-term risk.

The stock had a strong rally in May, rising from $400 to a high of around $790 before returning to a consolidation range of around $680–720. That pullback looks healthy rather than bearish, with price holding above the 50-day SMA.

The relative strength indicator sits at 59, with the signal line at 61. The bearish RSI cross seen on the chart corresponds to a recent high. That's a classic pressure blur following over 80 overbought readings. Current RSI levels are neutral to bullish, leaving room for action without further pressure.

Adding to that optimism, volume continues to build, supporting the view that institutional buyers are participating. The dotted resistance line near $760–$780 is a key level to watch for the next leg up.

Before you consider CrowdStrike, you'll want to hear this.

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