Due to the continued impact of global IT failures, CrowdStrike continued to sell off on Monday.

The stock fell by 13.46% on Monday, and fell more than 23% cumulatively for two consecutive trading days, narrowing the rise this year to 3%. The latest report is $263.91 with a total market value of $64.225 billion. On Tuesday,$CrowdStrike (CRWD.US)$During the session, CrowdStrike rebounded and rose. As of press time, CrowdStrike rose 1.63% to $268.211.

According to data from S3 Partners LLC, shorts made a profit of $0.978 billion in the two-day sell-off, pushing July's book profits to nearly $1.5 billion.

In addition, competitor SentinelOne rose more than 14% at one point, and JPMorgan said SentinelOne was the biggest beneficiary of the IT incident.

The CEO was asked to testify.

Last Friday, CrowdStrike's security software was updated, causing failures in Microsoft systems and affecting aviation, banking, media, and other industries worldwide.

On Saturday, Microsoft said that a total of 8.5 million devices worldwide were affected by the incident, accounting for less than 1% of all Windows devices.

Microsoft said, 'Although the proportion is small, the broad social and economic impact reflects the use of CrowdStrike by many companies that provide essential services.'

Microsoft said that CrowdStrike has helped develop a solution to help accelerate the repair of Microsoft's Azure infrastructure.

The U.S. House of Representatives committee has requested that CrowdStrike CEO George Kurtz testify before Congress regarding the IT failure.

The committee said in a statement that the incident has caused 'critical functions' of the global economy to be disrupted, including banking, aviation, medical care, emergency services, and media. Thousands of flights were delayed or cancelled, and many medical systems across the country had to reschedule appointments and non-emergency procedures.

The committee said that Americans will undoubtedly feel the lasting impact of this incident and they should be given a detailed understanding of how it happened and what mitigating measures CrowdStrike is taking.

The committee has requested that CrowdStrike arrange a hearing with the cybersecurity and infrastructure protection subcommittee by Wednesday.

Analysts remain bullish on the long-term prospects.

As a result of the incident, several analysts downgraded CrowdStrike's rating over the weekend and lowered their target price.

On July 21, Guggenheim, led by John DiFucci, downgraded CrowdStrike from Buy to Neutral, citing the short-term impact that the incident may have on the company's new business.

John DiFucci said, 'We can't tell investors that they need to buy CrowdStrike now.'

However, John DiFucci also said that the incident will ultimately make CrowdStrike stronger, and if investors want to invest for the long term, they can weather the storm.

Scotiabank downgraded CrowdStrike's stock rating from 'outperform' to 'neutral' and called the incident a 'stain' on its previously unblemished record.

Scotiabank also cut its target price from $393 to $300, representing a 13% upside from the overnight closing price.

Despite short-term adverse effects, Wall Street is still generally bullish on CrowdStrike, with 41 Wall Street investment banks giving it a buy rating, 8 holding ratings, and 2 sell ratings.

The average target price given by the analyst is about $390 per share.

Edited by Jeffrey