Why Are CrowdStrike Shares Trading Lower On Friday
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) stock is trading lower Friday after the company’a update caused an outage, impacting businesses across the world.
The Details: An update to one of CrowdStrike’s services caused Microsoft Corp. (NASDAQ:MSFT) Windows PCs to crash and display a blue screen.
At around 5:45 AM EST, CrowdStrike CEO George Kurtz posted on X that the company is working with customers effected by, “a defect found in a single content update for Windows hosts.” The CEO stated that it is not a security issue, the problem has been identified and the company is working to resolve it.
According to Reuters, the CrowdStrike related outage has caused issues with U.S Edgar Online Services, U.S. CISA and Union Pacific.
Microsoft also reported an issue with Azure which appears to be unrelated to CrowdStrike’s outage. Multiple airline companies, including Delta Air Lines, Inc. (NYSE:DAL) and American Airlines Group, Inc. (NASDAQ:AAL), paused or delayed certain operations earlier today due to technology issues. It’s unclear which issue caused it.
In a note from Goldman Sachs Group, Inc. (NYSE:GS) , the company explained that customers expect security issues to arise at some point. Furthermore, that consumers focus more on the response to the issue and how difficult it is to fix. Goldman does expect ongoing communications from the cybersecurity company.
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CRWD Price Action: CrowdStrike shares are trading 11.1% lower at $305.12, according to data from Benzinga Pro.
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