Wedbush Securities stated that the global network outage led to a worldwide computer paralysis and aviation travel interruption, which is a significant blow to cybersecurity companies. $CrowdStrike (CRWD.US)$For cybersecurity companies, this is a "major blow".
Wedbush Securities stated that the global network outage, which resulted in a global computer paralysis and disrupted aviation travel, is a significant blow to cybersecurity company CrowdStrike (CRWD.US).
The bank added that this may in turn give competitors an opportunity to take advantage of this advantage.
After CrowdStrike stated that it is deploying repair programs, the company's stock price fell 10% in pre-market trading on Friday.
Analyst Dan Ives wrote in an investor report: "This is obviously a major blow to CrowdStrike, and the company's stock will be under pressure after the global outage event related to Microsoft caused huge damage worldwide.""This is a technological update, and it is important it's not a more worrisome hacker / cybersecurity threat. CrowdStrike has a strong brand and global marketing influence, and needs to move to the next stage in the coming weeks and months to reduce the damage caused by this issue."
Ives added that although these issues will take time to resolve, it has not changed Wedbush's positive outlook on CrowdStrike or the broader cybersecurity industry.
Competitors have an opportunity to gain ground.
Ives believes that while CrowdStrike's issues have affected global companies and clients, it may create an opportunity for other cybersecurity companies to take advantage of.
Ives explained, "This could present opportunities for some competitors, but it will take time to determine the future path for CIO's and companies, as well as the legal actions related to this outage."
Evers did not identify any cybersecurity company that he thinks could benefit from it. However, the stocks of competitors, such as Fortinet (FTNT.US) and other companies, rose in pre-market trading. $Palo Alto Networks (PANW.US)$,$Fortinet (FTNT.US)$and other stocks of some companies rose in pre-market trading.
Evers stated that for cybersecurity companies, considering its impact on Windows computers, this is not a big issue, but it is still a "PR nightmare" for both companies. $Microsoft (MSFT.US)$Considering its impact on Windows computers, this is not a big problem, but it is still a "PR nightmare" for the two companies.
Editor/ping