Last Friday in EDT, the "largest IT failure in history" occurred globally: due to serious errors in software updates by the US information security giant, a large number of Windows computers using the software worldwide collectively fell into the "blue screen ocean". Affected by this news, CrowdStrike plummeted 15% at the opening last Friday, then closed at the worst level in nearly two years at 11.1%, and fell more than 4% before the market today; Microsoft also fell nearly 2% at the opening last Friday, and narrowed its decline to 0.74% at the close. Interestingly, the market expects peers threatened by CrowdStrike to win new customers and increase market share from this incident. Last Friday, other cybersecurity stocks rose one after another, with their stock prices rising by 7.85% and 2.16% respectively, and there were slight increases. Polarization! Wall Street holds a pessimistic attitude, while "Wood Sister" takes the opportunity to buy in at low price. However, Wall Street holds a pessimistic attitude towards CrowdStrike, the "culprit" of this incident, believing that it will affect the company's reputation and business in the next few quarters. Wedbush Securities stated that the global network interruption caused a global computer paralysis and aviation travel interruption, which is a "major blow" to CrowdStrike. Jefferies' Joseph Galo called this period "the most important", which may greatly limit the potential increase in the company's second quarter, as new customers are waiting for assurance that the situation will be handled. Oppenheimer's Ittai Kidron said that this is a major blow to CrowdStrike's reputation and is likely to not only affect investor sentiment, but also business activities in the next few quarters. In addition, Wall Street analysts played down any significant impact of the "blue screen" incident on Microsoft's business, and many value fund managers who love Microsoft are not concerned about this matter. On the other hand, Wall Street analysts predict that peers threatened by CrowdStrike may win new customers and increase market share from this incident. In addition, Palo Alto, the company with the largest global market share in this field, said that the company is expanding its platform and even providing certain functions free of charge to competitors' customers, with the goal of occupying a larger share of IT spending budgets in the long term. However, "Wood Sister" made a big purchase at the time of the global outage and bought 38,595 shares of CrowdStrike stock worth about $13.24 million in a counter-trend manner. In addition, according to foreign media reports, the series of damages caused by this IT disaster should not be ignored, and the issue of legal liability and compensation still needs to be discussed. According to CrowdStrike's agreement terms, the company may not need to compensate for this global incident even if a company claims for its business losses or revenue. Wood Rogers' Chief of Cybersecurity and Data Privacy Business commented, "This means that if a company claims its business losses or revenue against CrowdStrike, it can only recover the amount it paid to CrowdStrike at most".$CrowdStrike (CRWD.US)$Due to serious errors in software updates by the US information security giant, a large number of Windows computers worldwide using the software collectively fell into the "blue screen ocean".
Affected by this news, CrowdStrike plummeted 15% at the opening last Friday, then closed at the worst level in nearly two years at 11.1%, and fell more than 4% before the market today; Microsoft also fell nearly 2% at the opening last Friday, and narrowed its decline to 0.74% at the close.
Interestingly, the market expects peers threatened by CrowdStrike to win new customers and increase market share from this incident. Last Friday, other cybersecurity stocks rose one after another, with their stock prices rising by 7.85% and 2.16% respectively, and there were slight increases.$SentinelOne (S.US)$And.$Palo Alto Networks (PANW.US)$Last Friday, other cybersecurity stocks rose one after another, with their stock prices rising by 7.85% and 2.16% respectively.$Fortinet (FTNT.US)$,$Cloudflare (NET.US)$,$Datadog (DDOG.US)$,$Okta (OKTA.US)$There were slight increases.
Polarization! Wall Street holds a pessimistic attitude, while "Wood Sister" takes the opportunity to buy in at low price.
However, Wall Street holds a pessimistic attitude towards CrowdStrike, the "culprit" of this incident, believing that it will affect the company's reputation and business in the next few quarters.
Wedbush Securities stated that the global network interruption caused a global computer paralysis and aviation travel interruption, which is a "major blow" to CrowdStrike.
Jefferies' Joseph Galo called this period "the most important", which may greatly limit the potential increase in the company's second quarter, as new customers are waiting for assurance that the situation will be handled.
Oppenheimer's Ittai Kidron said that this is a major blow to CrowdStrike's reputation and is likely to not only affect investor sentiment, but also business activities in the next few quarters.
In addition, Wall Street analysts played down any significant impact of the "blue screen" incident on Microsoft's business, and many value fund managers who love Microsoft are not concerned about this matter.
On the other hand, Wall Street analysts predict that peers threatened by CrowdStrike may win new customers and increase market share from this incident.
In addition, Palo Alto, the company with the largest global market share in this field, said that the company is expanding its platform and even providing certain functions free of charge to competitors' customers, with the goal of occupying a larger share of IT spending budgets in the long term.
"Wood Sister" made a big purchase at the time of the global outage and bought 38,595 shares of CrowdStrike stock worth about $13.24 million in a counter-trend manner.
"Wood Sister"$ARK Next Generation Internet ETF (ARKW.US)$And.$ARK Fintech Innovation ETF (ARKF.US)$bought 38,595 shares of CrowdStrike stock worth about $13.24 million
According to CrowdStrike's agreement terms, the company may not need to compensate for this global incident even if a company claims for its business losses or revenue.
The terms of the Falcon security software agreement from CrowdStrike have already limited liability to 'paid fees.'
Wood Rogers' Chief of Cybersecurity and Data Privacy Business commented, "This means that if a company claims its business losses or revenue against CrowdStrike, it can only recover the amount it paid to CrowdStrike at most".
Editor/ping