Friday's IT outage marks the end of Crowdstrike.?
$CrowdStrike (CRWD.US)$ ![]()
Investors are selling their shares and switching to other cybersecurity stocks.
Let's look at other major outages in history and the impact on the stock prices.
$Meta Platforms (META.US)$ On October 4, 2021, a configuration error in Facebook's backbone routers caused a global outage of Facebook, Instagram, WhatsApp, and Messenger for nearly six hours, affecting billions of users.
Stock price effect: -4.9% 📉
Stock price then vs now: +46.2% 📈
Stock price then vs now: +46.2% 📈
$Visa (V.US)$ On June 1, 2018, Visa faced a major outage across the UK and Europe due to a hardware failure, disrupting card transactions and causing significant inconvenience.
Stock price effect: -1.7% 📉
Stock price then vs now: +102.9% 📈
Stock price then vs now: +102.9% 📈
$Amazon (AMZN.US)$ On February 2018, 2017, a typo during routine maintenance caused a major Amazon S3 outage, affecting many web services and resulting in a four-hour disruption.
Stock price effect: -0.4% 📉
Stock price then vs now: +333.4% 📈
Stock price then vs now: +333.4% 📈
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news porter, welcome and respect all view~
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102379107 : unfortunately CRWD fall is so much more compared to your eg above
Genie202 : they will be surely fined but the company outlook is good
MomentumPython1337 : it's different. only Visa's outage is closest in damage to what CRWD caused. with CRWD, they only have 1 stream of products, which is endpoint protection, and reputation is super important for a cybersecurity company. and the damage is not so simple. with visa, the payment is down sure, but you could still pay with a different card or just postpone the payment for a few hours. with crwd, your work computer is totally inaccessible and you can't do anything if your work data is only found on that computer. and the worst part is you can't even fix it yourself because you need your company's sys admin to manually do the steps for you. that's why you see delta airlines days after the outage still facing disruptions and still causing problems to customers.
with META, You don't NEED whatsapp or facebook to go about your daily business. there are alternatives like telegram, gmail, etc. or just plain old text message. it's an inconvenience, but not a critical disaster
i would argue it's really quite a different case here. people have even died because 911 ambulance system wasn't working.
it's also clear from the effect on price..crwd sank as much as 20% in premarket. meta only sank 4% and amazon sank less than 1%, which is basically nothing
please people. not all dips are meant to be bought