An IT issue caused by a faulty update is began wreaking havoc with Windows machines worldwide early Friday morning, knocking companies and banks offline and grounding planes at various airports. The problem appears to have been caused by an update from cybersecurity provider CrowdStrike. The issue seems to put affected machines into a recovery boot loop that prevents them from starting properly.
CrowdStrike is used by businesses around the world, including banks and airports, and the resulting chaos is making global headlines. As a result of the update, machines failed to load this throughout the morning of July 19, causing the Blue Screen of Death (BSOD) to appear and knocking countless systems offline.
While CrowdStrike says it has implemented a fix to the fault that was rolled out overnight, this will only stop more machines from crashing. It can't help those already affected and it remains to be seen just how much damage has been done once the dust settles.
As the day went on, plenty of businesses and government agencies reported delays or issues as they dealt with the fallout from the IT issue.
Reports have slowed, but we're looking for anything regarding the outage, especially the aftermath, as companies attempt to recover and airlines try to get customers to their final destinations.
Microsoft's CEO Satla Nadella has posted on his social media including X platform the following:
Yesterday, CrowdStrike released an update that began impacting IT systems globally. We are aware of this issue and are working closely with CrowdStrike and across the industry to provide customers technical guidance and support to safely bring their systems back online.
— Satya Nadella (@satyanadella) July 19, 2024
What is Crowdstrike?
CrowdStrike Holdings, Inc. is an American cybersecurity technology company based in Austin, Texas. It provides cloud workload protection and endpoint security, threat intelligence, and cyberattack response services.
The company has been involved in investigations of several high-profile cyberattacks, including the 2014 Sony Pictures hack, the 2015–16 cyberattacks on the Democratic National Committee (DNC), and the 2016 email leak involving the DNC. In July 2024, a faulty update to its security software caused global computer outages that disrupted air travel, banking, broadcasting, and other services.
How did it affected the Market?
In premarket trading, shares of CrowdStrike Holdings Inc. were down about 12.9% by 8:30 a.m. ET, after an earlier decline of about 22% around 5 a.m. ET.
Exchange-traded funds with the largest exposure to CrowdStrike Holdings include TrueShares Technology, AI & Deep Learning ETF with a 9% allocation, First Trust NASDAQ Cybersecurity ETF (NYSE:CIBR) with an 8% weight, and REX AI Equity Premium Income ETF (NYSE:AIPI) with a 7% share.
In the hedge fund sector, Strategy Capital LLC holds a substantial 16.1% weight in CrowdStrike, while Avalon Global Asset Management, managed by Nancy Kukacka, has a 7.6% stake, according to the latest 13F filings.
KNOWN Investment Fund Didn't hold any of their shares, before holding any share at a certain company, a hedge fund managers make analysis on it including its financial statements, and technologies used, so our firm haven't considered this one. But this doesn't make a company more less valuable even in other coming days, may be this occurred fault is going to be solved and enhance its value which will led to share price rising.
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