We seemingly used a good chance to hit the bullseye when updating our target price for CrowdStrike in nearest months to $400 only five days ago, as we believed a technical correction to nearly $300 per share had not been backed fundamentally. A detailed article by our group of analysts contained lots of particular numbers, which we do not feel proper to repeat here. Yet, the main conclusion was that shares of CrowdStrike were to be purchased soon by the market's crows at then-very-attractive price levels. And this is exactly what happened already, as prices soared by more than 25% in less than four trading sessions to approach $385 per share in the first regular hours on Monday, June 10.

One latest 10% push higher was made, helped by news that CrowdStrike will join the S&P 500 broad market index in ten days. The decision by S&P Dow Jones Indices committee tracked the stock's profitability, according to a set of generally accepted accounting principles (GAAP) which are widely used among Wall Street businesses for financial reporting purposes.

The improved fundamentals of the global cybersecurity leader were boosted due to “increased focus on balancing growth and operating efficiency over the past few years,” JPMorgan analysts commented after the announcement, adding that while they viewed the inclusion into the S&P 500 index as a "positive", they also preferred to view this as a "milestone" fact to reflect an "improving quality over the long term, rather than a long-term catalyst".

Thus, we rather stand in solidarity with this claim, which may mean that a proper moment for at least a partial profit taking may be considered in the nearest few days, as the rest of the path from $300 to our $400 goal is negligibly small compared to the big distance already covered. A profit/risk ratio becomes much worse now, when the profit achieved is large, and so the task of protecting profit becomes more vital than the idea of squeezing even more and more money off this successive trade.

The impact of the S&P 500 inclusion decision could be short-lived, even though the strong factors behind the whole CrowdStrike story are still extremely bullish. Moving a stop-loss to a positive territory in terms of ultimate financial result is one of possible adequate responses of a smart investor to any faster-than-expected move.