😳😳😳 #CrowdStrike stock falls another 13% on Monday, days after global IT outage
CrowdStrike Shares Plunge After Software Update Failure
CrowdStrike Holdings Inc. (CRWD) experienced a significant decline in its stock price following a botched software update that caused a global computer outage.
Key Points:
- Stock Decline: CRWD shares fell 13% on July 22, reaching $263, following a 30% monthly decline, with 23% occurring since the July 19 update failure. The stock has dropped 33% from its all-time high of $392 on July 1.
- Short Sellers: Bloomberg reported that short sellers made $978 million from CrowdStrike’s 23% two-day decline. The #cybersecurity sector has seen increased short interest, with CrowdStrike being the second-most shorted company after Microsoft.
Analyst Reactions:
- Downgrades: Analysts downgraded CRWD and lowered price targets. Guggenheim analysts, led by John , removed their $424 price target but believe the company will eventually recover.
- Long-Term Outlook: Despite the setback, many Wall Street analysts remain optimistic about CrowdStrike, with an average price target suggesting a 40% upside from current levels.
Centralization Concerns:
- Jimmy Su, Binance: Highlighted that centralized computing architectures are prone to similar incidents in the future. He noted that decentralized networks like #bitcoin☀️ remain unaffected, with over 11 years of uninterrupted operation. Su emphasized that decentralized systems are more resilient because they don't rely on a single point of failure.
In summary, CrowdStrike’s stock has taken a significant hit due to a software update failure, but there is optimism about its long-term prospects. The incident also underscores the vulnerabilities of centralized computing systems compared to decentralized networks.
Source - cointelegraph.com
