Shares of CrowdStrike (CRWD:US) closed almost 15% lower Wednesday after the cybersecurity company reported mixed earnings for its third quarter.

CrowdStrike shares initially gapped almost 20% lower before some long-term investors started buying shares as they hit a fresh 27-month low. While CrowdStrike delivered better-than-expected top and bottom-line numbers, shares underperformed on disappointing new Annual Recurring Revenue (ARR) figures.

Although the new ARR came in at $198.1 million, it fell short of the average analyst estimate of $209 million. CRWD blamed weaker ARR on macroeconomic headwinds that forced some customers to “pursue multi-phase subscription start dates, which delays ARR recognition until future quarters."

Moreover, CrowdStrike delivered a weaker-than-expected FQ4 revenue forecast, signaling slowing demand. In response to weak earnings, at least two sell-side analysts slashed their ratings on CrowdStrike stock following disappointing results.

Almost 6 weeks prior to CrowdStrike reporting its earnings for the third quarter, Congressman Ro Khanna sold CRWD shares while they traded above $150 a share. Rep. Khanna made two trades - October 20 and 21 - to reduce his exposure to the cybersecurity company. He previously bought some CRWD shares in February and April this year at much high prices.

For comparison purposes, CrowdStrike closed at $117.65 yesterday.

Congressman Khanna, a member of the Armed Services Committee in Congress, is a regular stock market trader. The Californian Democrat is an avid trader of tech stocks, including Alphabet (GOOGL:US) and Meta Platforms (META:US).