“CrowdStrike shares continue to slide on persistent outage impact”, “Shares of CrowdStrike fell 5% in premarket trading on Monday, marking continued losses following analyst downgrades. Concerns mounted over financial repercussions from last week’s global cyber outage, prompting renewed investor caution.”
CrowdStrike’s faulty security software update, impacting Microsoft Windows systems, caused widespread internet disruptions globally, severely affecting banking and healthcare services.
Microsoft reported on Saturday that approximately 8.5 million Windows devices, accounting for less than 1% of all Windows machines, were impacted by the incident.
Services across various industries gradually resumed on Friday, but companies faced backlogs, delays, canceled flights, and other challenges. This raised concerns about preventing future occurrences and sparked debates on whether critical software should be controlled by a limited number of companies.
CrowdStrike will likely face resistance in signing new deals in the near term as a result of the anticipated fallout from the quality assurance issue which caused the massive tech outage, Guggenheim analysts said on Sunday.
“Despite the outage’s short-term impact, RBC Capital Markets analysts anticipate CrowdStrike will strengthen, viewing it as a process breakdown rather than a breach.”
At least six brokerages have cut their price targets on CrowdStrike, with two more downgrading the stock’s rating to “neutral” from “buy”.
Shares of cybersecurity rivals Palo Alto Networks, Sentinel One and Fortinet were up between 1 per cent and 3 per cent in premarket trading on Monday.
