CrowdStrike’s Surge Pulls This Cloud Computing ETF Higher

Cloud computing is one of the sub-sectors of technology that are benefiting from last year’s rally. When it comes to specific names, CrowdStrike is a notable one helping to push the Direxion Daily Cloud Computing Bull 2X Shares ETF (CLDL) even higher.

While large cap tech names like Amazon or Apple get all the stock market fanfare, names like CrowdStrike are quietly percolating in the background. The company provides cloud-based cybersecurity solutions, which is imperative in today’s digital world. As more companies turn to cloud-based solutions, they will need ample security to protect their operations and customers from unexpected breaches.

CrowdStrike’s stock has been a stellar performer the past year, rising almost 200% and given the increasing use of cloud-based platforms in the coming years, its long-term growth trajectory is equally as impressive. Analysts are certainly taking notice of Crowdstrike with HSBC being one of them.

“Shares of CrowdStrike have surged to new highs this year, but analysts at HSBC think the cybersecurity specialist has more in the tank,” a Motley Fool article published on Yahoo! Finance noted. “The bank’s financial services firm recently adjusted its price target to $411, representing an upside of 25% from the current share price of $329.”

Crowdstrike is the top holding of CLDL so it’s surge in price has been positively affecting the ETF. As per CLDL’s goal, it seeks 200% of the daily performance of the Indxx USA Cloud Computing Index. The companies included in the index are involved in the delivery of computing services. Those include servers, storage, databases, networking, software, analytics, and more, over the internet — more broadly referred to as “the cloud.”