Microsoft and Crowdstrike stock recovers (a bit) after IT outage
Investors are evidently taking in their stride the immediate aftermath of what is being described as ‘potentially the world’s worst IT outage’ – with Microsoft (NASDAQ:MSFT) stock clawing back the worst of the morning’s losses.
At $437.48, Microsoft shares are down just $2.83 or 0.6% - having seen as low as $432 earlier, which equated to more than a 2% drop.
Crowdstrike (NASDAQ:CRWD), the cyber security firm that’s taking more of flack, was meanwhile 11% lower at $305.33, though even so it traded as low as $290.10 earlier, a decline in excess of 15% earlier.
Nonetheless, the computing crisis is not yet over and it may be a while longer until potential ramifications and reputational impacts are better understood.
Daniel Ives, tech analyst for American stockbroker Wedbush, in a note praised Crowdstrike chief executive George Kurtz for the way in which he has fronted up and communicated well during the crisis.
Moreover, the broker reckoned the high profile incident won’t spoil a bullish long term story for the cyber security firm.
“Globally Kurtz has stepped up and helped the damage control immensely for CrowdStrike as it speaks to the stock rebounding from lows seen early this morning,” Ives said.
“CrowdStrike remains the gold standard and we believe this historical incident will only be a dark chapter for the company and not impact the long term bull story for the name.”
Looking further ahead, meanwhile, Ives also predicted that today’s events may stir up merger a ‘more aggressive’ approach.
Indeed, Google was this week rumoured to be pursuing its largest ever takeover, targeting cloud security firm Wiz.
Impacts of the outage
Friday morning brought significant disruptions due to a faulty antivirus software update, causing a global IT outage.
The issue grounded over 3,300 flights, impacted banking systems, and disrupted healthcare and media services worldwide.
Crowdstrike, a cybersecurity firm, admitted the problem stemmed from a recent update to its antivirus software, affecting only Windows PCs. George Kurtz, CEO of Crowdstrike, stated that the issue had been identified and isolated, with a fix deployed.
Microsoft reported it was taking "mitigation action" to address the ongoing impact.
The outage, first reported in Australia, quickly spread to the US and Europe. Airports worldwide experienced long queues and flight cancellations. UK airports, including Stansted and Gatwick, faced delays, while major airlines such as United, Delta, and American Airlines grounded their flights.
The financial impact was substantial, across several sectors.
Banks, healthcare providers, and media outlets, including Sky News, faced operational disruptions.
The London Stock Exchange experienced issues with its news service, and Poland’s largest container terminal in Gdansk reported operational disruptions.
Crowdstrike emphasized that personal devices like home computers and mobile phones were not affected.
Businesses are advised to follow Microsoft’s troubleshooting steps, including multiple reboots and file deletions, to restore functionality.
