CrowdStrike President, CEO and Co-Founder George Kurtz speaks at the WSJTECH Live Conference in Laguna Beach, California, USA on October 21, 2019.
Mike Black | Reuters
mass strike Shares of the cybersecurity software company fell 13% Monday morning as it continued to help customers across industries recover from network outages that cost millions of dollars. Microsoft The Windows device went offline last week.
Earlier on Friday, the company released a flawed update to its Falcon vulnerability protection software that crashed PCs, data center computer servers and monitors, causing Grounded flights and canceled medical appointments. The incident left 8.5 million Windows devices in trouble, less than 1% of the global total. Microsoft said.
IT staff quickly repaired the computer. Meanwhile, hackers are trying to take advantage of the chaos, setting up Malicious website Software updates appear to be available. CrowdStrike CEO George Kurtz solved the situation Joining CNBC’s Jim Cramer.
CrowdStrike shares fell 11% on Friday, but the impact isn’t over yet. Over the weekend, people shared photo A so-called “Blue Screen of Death” showing up on social media on a Windows device is a sign that the computer needs administrator attention. CrowdStrike said Sunday it was testing a faster way to repair affected machines.
On Sunday, Guggenheim Securities downgraded CrowdStrike stock to neutral from buy. Analysts led by John DiFucci said the stock still trades at “the highest multiple of recurring revenue across our entire software coverage universe.”
Analysts wrote that CrowdStrike may need time to repair its image, the consequences of which could hurt signings.
“We continue to have the utmost respect for CrowdStrike’s leadership team and believe the company will ultimately emerge stronger from this event, and that investors can weather this if they have a multi-year horizon,” they wrote. However, we find it difficult to tell investors that they need to buy CRWD now.”
Goldman Sachs maintained a buy rating on CrowdStrike stock in a report issued earlier Monday. But analysts at the investment bank said they expected the CrowdStrike deal to take longer to close between the outage and July 31, the end of the software company’s fiscal second quarter.
Analysts led by Gabriela Borges wrote: “Our recent conversations reiterate our view that endpoint share changes following this event are likely to be minimal – although we recognize More details in the postmortem will further corroborate this view.
They point to a 2010 McAfee outage that crashed computers as a glimpse into what happened before last week’s incident. Chief Executive Dave DeWalt told analysts on a conference call: “The revenue impact due to the deferral was approximately $6 million in deferred revenue that was not recognized on the balance sheet and revenue was impacted by an additional About $14 million in negative impact Intel acquired the antivirus company in 2011.
