Shares of CrowdStrike fell more than 4% in premarket trading on Tuesday after a report Delta Air Lines will seek compensation from the cybersecurity firm over the recent global IT outage that crippled industries including airlines.
Following a recent, widely-reported cloud computing outage incident, you may be wondering what cloud stocks to sell. Besides the company in question behind the outage, there are other cloud stocks where exiting your position is likely the best move.
The market doesn't trust CrowdStrike (NASDAQ: CRWD ) anymore. Following its software patch that caused IT systems worldwide to meltdown, the cybersecurity stock lost all of the gains it made in 2024.
No matter how sophisticated technology becomes, vulnerabilities can still lead to significant damage and global outages. This was the case in recent days when a faulty CrowdStrike update caused havoc for Windows computers, laptops, and countless other devices, with significant implications for insurance stocks.
Just as the effects of the July 19 worldwide outage start to diminish, CrowdStrike (NASDAQ: CRWD) and Microsoft (NASDAQ: MSFT), two main protagonists of this event, are hit with a major lawsuit by Delta Airlines (NYSE: DAL).
CrowdStrike stock plunged after a faulty software update drove entire industries offline. The stock is still expensive at a price-to-sales ratio of 19.
CrowdStrike stock was reacting to reports of a new legal fight against the cybersecurity company.
Delta Air Lines seeks damages from CrowdStrike and Microsoft for a July software outage. The outage forced Delta to cancel 6,000 flights, potentially costing $350 million to $500 million.
Following a sprawling technological outage this month that forced the cancellation of thousands of flights, Delta Air Lines Inc. is lawyering up to seek compensation from the two companies at the heart of the disruption — cybersecurity firm CrowdStrike Holdings Inc. and Microsoft Corp, according to a report from CNBC.
Analysts estimate that the impact from the cyber outage could be in the hundreds of millions.
Delta has hired prominent attorney David Boies to pursue potential damages from CrowdStrike and Microsoft after a mass outage earlier this month, CNBC's Phil Lebeau reported on Monday. CrowdStrike shares were trading lower in extended trading.
CrowdStrike Holdings (CRWD) concluded the recent trading session at $258.81, signifying a +1.03% move from its prior day's close.