Shares of cybersecurity company Crowdstrike break even
Originally, Crowdstrike services are supposed to protect IT issues. Instead, a faulty software update seems to be causing global disruptions.
The stocks of IT services provider Crowdstrike have taken a hit following global computer problems. The stock dropped by around 15% at the Frankfurt Stock Exchange compared to the previous day. The pre-market US trading also showed a 14.4% decline.
According to media reports, a supposedly faulty software update from Crowdstrike appears to have triggered a global issue on computers that use Microsoft applications. In many countries, including Germany, airport operations have been disrupted as a result. Banks, broadcasters, supermarkets, and gas stations had to limit or halt their offerings. The Austin, Texas-based company has yet to respond to a request for comment. A recorded message on Crowdstrike's customer service hotline informs callers that there are currently disruptions to the Microsoft operating system in relation to the company's own antivirus protection Falcon. Microsoft stocks also declined by 2.1% pre-market.
With the Crowdstrike issues affecting international air travel primarily, the stocks of several airlines have also been impacted. Companies reporting problems include Lufthansa and its subsidiary Eurowings, as well as Ryanair or US carriers like American Airlines and Delta. Lufthansa stocks in the MDAX index fell by up to 3% at one point. Ryanair stocks dropped by up to 3.6% at the Dublin Stock Exchange.
Despite the Crowdstrike issues, the stocks of other cybersecurity companies are in demand. In pre-market US trading, the papers of SentinelOne, Palo Alto Networks, Fortinet, and Zscaler rose between 1.4% and 6.3%.
The issue at Crowdstrike, resulting from a faulty software update, affects Microsoft applications globally, leading to disruptions in various IT-Branch sectors such as airports and banks. This blame game in the IT-Security realm has significantly impacted the Economy, causing stocks of IT-related companies like Crowdstrike and Microsoft to fluctuate dramatically in stock trade.
