Shares in cybersecurity firm CrowdStrike have taken a hit, plunging more than 13% as the company grapples with the fallout of causing a global IT outage. Chief security officer Shawn Henry described the incident as a “gut punch” for the firm, which had previously been highly trusted in the industry.
The faulty “content update” last week led to the crash of 8.5 million Microsoft Windows computers worldwide, resulting in manual reboots for some affected businesses. Delta Airlines, one of the most impacted firms, had to cancel over 4,000 flights since Friday, causing significant disruptions for travelers.
CrowdStrike’s shares had been on the rise, up nearly 40% this year before the incident occurred. Despite the recent drop in shares, analysts believe the long-term damage to the business will be minimal, as there are few alternatives to CrowdStrike in the cybersecurity sector.
While some investors are betting on the firm’s rivals benefiting from its struggles, others believe CrowdStrike will emerge stronger from this setback. Analysts emphasize the importance of resolving the issues promptly to maintain customer trust and confidence in the company.
The incident serves as a reminder of the modern world’s reliance on complex IT systems and the need for preparedness for such events. The government, along with cybersecurity partners, is working to review the lessons learned from this incident to prevent similar disruptions in the future.
