Crowdstrike Shares fell as much as 13% on Monday morning as the cybersecurity software company continued to help clients across industries recover from an outage that caused the loss of millions of customers. Microsoft Last week, my Windows device went offline.
The company released a flawed update to its Falcon software early Friday that caused PCs, computer servers in data centers and display screens to crash, leading to flight cancellations and medical appointments to be canceled. The incident affected 8.5 million Windows devices, less than 1% of the total worldwide. Microsoft.
IT staff quickly got to work fixing the computers, while hackers took advantage of the confusion. Malicious websites CrowdStrike CEO George Kurtz spoke about the situation on CNBC’s Jim Cramer on Wednesday, appearing to provide a software update.
CrowdStrike shares fell 11% on Friday, but the fallout isn’t over yet. photograph There have been a number of reports on social media of Windows devices experiencing the so-called “blue screen of death” – a sign of a computer needing administrative attention – and CrowdStrike said Sunday it was testing ways to repair affected machines more quickly.
Guggenheim Securities on Sunday downgraded CrowdStrike shares to neutral from buy, with analysts led by John DiFucci saying the stock still trades at “the highest recurring revenue multiple across all of the software we cover.”
It could take time for CrowdStrike to repair its image, which could have a negative impact on the deal, the analysts wrote.
“We still have the utmost respect for CrowdStrike’s management and believe the company will ultimately come out stronger in the wake of this incident, and that investors can weather this if they are prepared to look several years ahead,” they wrote. “However, it is difficult to tell investors they need to buy CrowdStrike right now.”
Goldman Sachs maintained its buy recommendation on CrowdStrike shares in a report released early Monday, but analysts at the investment bank said they expect the CrowdStrike transaction to take some time to complete between the time of the outage and the company’s second-quarter earnings close on July 31.
“Recent discussions reaffirm our view that share fluctuations at the endpoint following this event will be minimal, although we acknowledge that additional details in the post-mortem will further support this view,” the analysts, led by Gabriela Borges, wrote.
As an indication of what came before last week’s events, analysts pointed to a 2010 outage at McAfee that caused a computer crash. “The revenue impact from deferrals was approximately $6 million of deferred revenue that was not recorded on the balance sheet, plus an additional negative impact of approximately $14 million to revenue,” CEO Dave DeWalt told analysts on a conference call. Intel bought the antivirus company in 2011.
clock: Claimers Stop Trading: CrowdStrike
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