US cybersecurity company Crowdstrike Holdings Inc. (NASDAQ: CRWD ) tried to recoup premarket losses it felt overnight and during the day on Friday as its cloud software update caused global technology disruptions.
What’s up: A failed update to CrowdStrike’s Falcon platform on Thursday night caused disruptions to Microsoft systems, bringing critical global services such as airports, ports, financial institutions and hospitals to a standstill. The problem stems from a technical error in a software update, eliminating initial speculation of a hacker attack.
Don’t miss:
George Kurtzpresident and CEO of CrowdStrike, stated in X the company is “actively working with customers affected by the flaw found in a single content update for Windows hosts.”
Microsoft, which uses CrowdStrike services to improve security for its Azure and Office365 software, said the cause of the outage has been resolved.
Microsoft, which uses Crowdstrike services to improve Azure and Office365 security, later assured that the root cause of the outage has been resolved.
Trending: Commercial real estate has historically outperformed the stock market, and this platform allows individuals to invest in commercial real estate with as little as $5,000 offering a target return of 12%.
What It Means For CrowdStrike: “This is clearly a major black eye for CrowdStrike,” Wedbush analyst said Daniel Ives said in a note on Friday, predicting stocks will remain under pressure.
Ives noted that while CrowdStrike will have to make efforts to mitigate the damage over time, Wedbush’s positive long-term outlook on CrowdStrike and the cybersecurity sector remains unchanged.
The situation could create opportunities for competition as companies reevaluate their cybersecurity strategies and potential legal action, analysts said.
Market impact: In premarket trading, shares of CrowdStrike Holdings Inc. they were down about 12.9% at 8:30 a.m. ET, after earlier dropping about 22% at about 5 a.m. ET.
The exchange-traded fund with the largest exposure to CrowdStrike Holdings is included TrueShares Technology, AI & Deep Learning ETF (NYSE:LRNZ) with a 9% allocation, First Trust NASDAQ Cybersecurity ETF (NYSE: CIBR) with a weight of 8%, and REX AI Equity Premium Income ETF (NYSE:AIPI) with a 7% stake.
In the hedge fund sector, Strategy Capital LLC holds a substantial 16.1% weight in CrowdStrike, while Avalon Global Asset Managementmanaged by Nancy Kukackahas a 7.6% stake, according to its latest 13F filings.
business operations in the airline and shipping industry were greatly affected, with United Airlines Holdings Inc. Stock price history (NYSE:UAL), Delta Air Lines Inc. Stock price history (NYSE: DAL) and American Airlines Group Inc. (NYSE:AAL), all flights were temporarily grounded due to communication problems.
Trending: Is the rise or fall in real estate prices continuing? People are finding out about risk-free real estate investments that allow you to cash out whenever you want.
American Airlines reported at 5 a.m. ET that it had safely resumed operations.
According to FlightAware.com, Delta, American Airlines and United Airlines canceled 331, 279 and 149 flights, respectively, with delays of 194, 211 and 164. In total, 1,071 flights in, in, or out of the United States were canceled this morning.
Other cybersecurity companies are getting into pre-market trading, capitalizing on CrowdStrike’s disruption.
SentinelOne Inc. (NYSE:S), Palo Alto Networks Inc. (NASDAQ:PANW) and Okta Inc. (NASDAQ: OKTA ) saw its shares rise 6.3%, 2.9%, and 1%.
While Microsoft’s Windows systems are affected, Mac and Linux hosts remain unaffected, as confirmed by CrowdStrike CEO Kurtz. The stock price of Apple Inc. (NASDAQ:AAPL) rose 0.9% in pre-market trading.
Read Next:
“ACTIVE INVESTOR’S SECRET WEAPON” Supercharge your Stock Market Game with the #1 “news & everything else” trading tool: Benzinga Pro – Click here to start your 14 Day Trial Now!
Shares of Benzinga, Inc.
The article CrowdStrike Shows Heavy Losses As Microsoft Announces Global Tech Outage Resolution: ‘This Is Clearly a Major Black Eye’ originally appeared on Benzinga.com
