Malcolm Ethridge, Executive Vice President of CIC Wealth, expressed his bullish stance on CrowdStrike Holdings Inc. CRWD on CNBC’s Worldwide Exchange on Friday.
What Happened: Ethridge suggested that the current situation presents a buying opportunity for investors.
“When we get to a place where we believe that the worst of the news is out there, it’s time to buy Crowdstrike. If you loved it at $350, then you should absolutely love it at $250.”
This comes in the wake of CrowdStrike facing legal action over a global outage that impacted air travel last month. The cybersecurity firm is accused of negligence in testing and deploying its software, leading to the outage.
Why It Matters: The outage has resulted in significant operational disruptions, including about 7,000 flight cancellations over five days, leading to a direct revenue impact of $380 million for the September quarter for Delta Air Lines, Inc. DAL.
The outage caused by CrowdStrike has had significant global implications. The CEO, George Kurtz, has been summoned by a U.S. congressional panel to testify on the global tech outage. The faulty update affected less than 1% of Windows users globally, which equates to approximately 8.5 million machines, as revealed by Microsoft.
Despite the lawsuit and the operational disruptions, some analysts remain optimistic about CrowdStrike’s long-term growth potential. Piper Sandler analyst Rob D. Owens recently upgraded CrowdStrike’s rating to Overweight from Neutral, citing the company’s resilience and dominance in the endpoint space as key growth catalysts.
Price Action: Crowdstrike was trading 1.65% higher during pre-market on Friday, according to Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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