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CrowdStrike reports sensor update causing customer outages

EditorNatashya Angelica
Published 07/22/2024, 05:34 PM
CRWD
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CrowdStrike Holdings, Inc. (NASDAQ:CRWD), a leader in cloud-delivered endpoint protection, reported on Monday a recent software update issue that affected some of its customers. The company confirmed that the disruption, which occurred on Friday, was not the result of a cyberattack but due to a sensor configuration update to their Falcon sensor software.

The update, released at 4:09 UTC on July 19, led to outages for customers using certain Windows systems. CrowdStrike's teams were immediately mobilized to address the issue and support the stability of affected systems. The problematic update was reverted by 5:27 UTC on the same day.

CrowdStrike is actively working with impacted customers to restore their systems fully. The company has issued remediation guidance via its customer support portal and has been providing updates about the event on its blog.

This situation is ongoing, and CrowdStrike is continuing to assess the event's impact on its business and operations. The company, based in Austin, Texas, has cautioned that new information could emerge that may change the current understanding of the incident's implications.

In the company's recent filings with the Securities and Exchange Commission, particularly under the "Risk Factors" section of its latest Quarterly Report on Form 10-Q, CrowdStrike acknowledges that various risks and uncertainties could lead to results differing materially from the current statements.

The information about this event is based on a press release statement from CrowdStrike Holdings, Inc. and is intended to provide factual information without speculation or endorsement of claims.

In other recent news, cybersecurity firm CrowdStrike has been in the spotlight following a significant global outage triggered by a flawed update in the company's security software.

The malfunction impacted around 8.5 million computers running Microsoft (NASDAQ:MSFT)'s Windows operating system, causing widespread disruptions across various industries. The U.S. House of Representatives Homeland Security Committee has summoned CrowdStrike CEO, George Kurtz, to discuss the situation and the company's plans to prevent future occurrences.

The fallout from the outage has led to several adjustments by financial firms. Analysts from Guggenheim expressed concerns about CrowdStrike securing new contracts in the short term.

Still, RBC Capital Markets maintained a positive outlook, stating that CrowdStrike is poised to emerge stronger. Despite the challenges, the firm reduced the price target for CrowdStrike from $420.00 to $380.00, while maintaining an Outperform rating.

Piper Sandler revised its price target for CrowdStrike to $310, down from $400, due to potential regulatory and legal challenges. Meanwhile, BTIG downgraded CrowdStrike's stock from Buy to Neutral, citing potential difficulties in acquiring new customers and possible delays in closing deals.

Despite these developments, Wolfe Research maintained its Peerperform rating on CrowdStrike, suggesting that the firm's long-term prospects remain intact.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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