##  [# CrowdStrike Drop Weighs Down Cybersecurity ETFs](/sections/features/crowdstrike-drop-weighs-down-cybersecurity-etfs) 

 

# CrowdStrike Drop Weighs Down Cybersecurity ETFs

 

 

\- CrowdStrike Holdings weighed on cybersecurity ETFs Wednesday, even as the broader stock market pushed higher.  
\- The drop is a reminder of the volatility that can come with single-stock bets.



 

 

 

 

 [![sumit](/sites/default/files/styles/author_image_icon/public/2023-03/Sumit_0.png?itok=SO-7S5SH "sumit")](/authors/sumit-roy) 

[By Sumit Roy ](/authors/sumit-roy)

 Jun 04, 2025

 Edited by: David Tony

 

 

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A sharp drop in shares of [CrowdStrike Holdings Inc. (CRWD)](/stock/crwd) weighed on cybersecurity ETFs Wednesday, even as the broader stock market pushed higher.

CrowdStrike fell as much as 8.9% after reporting first-quarter revenue that came in just shy of analyst expectations. The company posted $1.1 billion in revenue, slightly below estimates, and while that still represented nearly 20% year-over-year growth, it underwhelmed investors who had pushed the stock to record highs on Tuesday.

With a market cap of $115 billion, CrowdStrike is one of the largest pure-play cybersecurity firms in the world, second only to [Palo Alto Networks (PANW)](/stock/panw), which is worth around $130 billion. The stock had been up 43% year-to-date heading into the report; it’s now up 35%.

## Strong Cybersecurity Demand 

CrowdStrike has benefited from the growing need for cybersecurity in an increasingly digital and threat-filled world. The company is a leader in cloud-based security and has been quick to adopt newer technologies like [artificial intelligence](https://www.etf.com/topics/artificial-intelligence) to stay ahead of evolving threats.

Shares were hit hard last year after a faulty update to its software caused widespread outages across banks, airlines and other critical systems, triggering a global tech disruption.

The incident raised concerns that CrowdStrike’s reputation could take a permanent hit, but the company moved quickly to contain the fallout and the stock rebounded strongly in the months that followed, eventually climbing to new highs—until today’s pullback.

 
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## CIBR, HACK &amp; BUG Impacted

CrowdStrike has been a big driver of returns for cybersecurity ETFs in 2025. The three largest—the $9.5 billion [**First Trust NASDAQ Cybersecurity ETF (CIBR)**](/cibr), the $2.2 billion [**Amplify Cybersecurity ETF (HACK)**](/hack) and the $1.1 billion [**Global X Cybersecurity ETF (BUG)**](/bug)—are up between 11% and 16% year to date. All three count CrowdStrike as their second-largest holding, with weightings between 6% and 10%.

While the company’s fundamentals remain strong, Wednesday’s drop is a reminder of the volatility that can come with single-stock bets.

For investors who want exposure to the broader cybersecurity theme without taking on that kind of idiosyncratic risk, ETFs offer a more diversified approach. As of midday Wednesday, CrowdStrike shares were down more than 5%, but the ETFs that hold it were only fractionally lower.



 

 

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 [ Sumit Roy Senior ETF Analyst ](/authors/sumit-roy) 

 

 

  Sumit Roy is the senior ETF analyst for etf.com and author of (Don't) Invest Like a Pro. He creates a variety of content for the platform, including…   [View Bio](/authors/sumit-roy)

 



 

 


 Related Topics  [Cybersecurity](http://www.etf.com/topics/cybersecurity) 

 [Amplify](http://www.etf.com/topics/amplify) 

 [Global X](http://www.etf.com/topics/global-x) 

 [First Trust](http://www.etf.com/topics/first-trust)