Why CrowdStrike Stock Sank Today

CrowdStrike (NASDAQ: CRWD) stock saw a significant pullback Friday. The cybersecurity company's share price closed out the session down 6.8% in a day of trading that saw the S&P 500 index fall 1.8% and the Nasdaq Composite index fall 2.2%.

CrowdStrike's valuation retreated today in conjunction with a series of indicators that raised concerns about the state of the U.S. economy. The company's share price also took a hit following a Bloomberg report stating that the Department of Justice (DOJ) and Securities and Exchange Commission (SEC) were looking into its deal with Carahsoft.

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Shifts in the macroeconomic outlook dragged CrowdStrike stock lower

Growth stocks got hit hard today amid a new round of bearish macroeconomic data. Existing home sales for January dipped to 4.08 million units, and the University of Michigan's Consumer Sentiment index score declined to 64.7% in the month -- marking a 10% sequential decline. The weakening of consumer sentiment stemmed from concerns about the outlook on inflation and tariffs.

S&P Global also released new data today that raised concerns among investors. The company listed its manufacturing Purchasing Managers' Index (PMI) score for February at 51.6, which still represented modest growth but came in below the 52.8 level called for by the average economist forecast. Meanwhile, S&P's services PMI score saw an unexpected decline to 49.7 and came in significantly below the average economist forecast for a score of 52.8. The macroeconomic news caused a sell-off for equities, and CrowdStrike and other growth stocks saw outsize pullbacks.

CrowdStrike stock also took a hit on Carahsoft investigation news

In addition to the macro pressures today, CrowdStrike stock lost ground due to a report stating that the DOJ and SEC were investigating the company's $32 million deal through Carahsoft to provide cybersecurity services to the Internal Revenue Service (IRS). While CrowdStrike reportedly already doesn't expect the deal to be renewed, investors are seeing some risk that, due to the investigations, the company could wind up taking a hit on previously booked or anticipated sales.

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Keith Noonan has positions in CrowdStrike. The Motley Fool has positions in and recommends CrowdStrike. The Motley Fool has a disclosure policy.