CrowdStrike Holdings Inc CRWD shares are extending losses Monday following a global IT outage last week that the cybersecurity company claimed responsibility for. Jim Cramer expects the selloff to be short-lived.
What To Know: CrowdStrike shares closed down about 11% on Friday after an update led to a major outage that impacted businesses across the world.
CrowdStrike CEO George Kurtz immediately accepted blame for the outage and explained that the issues were caused by "a defect found in a single content update.” He also confirmed that the outage was not a security incident and was not brought on by a cyberattack.
Cramer applauded the CrowdStrike CEO’s response to the event Monday on CNBC’s “Squawk On The Street.”
“I’ve had George Kurtz, the CEO, on numerous times, and look, the man’s a hitter and the company came out immediately,” Cramer said.
Cramer explained that he got a call from Kurtz very early in the morning on Friday asking to come on CNBC to apologize for the incident and update customers on the company’s response.
Related Link: CrowdStrike Outage Impacted Less Than 1% Of Windows Devices But Still Managed To Wreak Havoc: Report
The “Mad Money” host has long been a CrowdStrike bull and he’s not changing his stance following Friday’s IT mishap. Although Kurtz has come out and said everything that happened was CrowdStrike’s fault, there was also a Microsoft Corp MSFT Azure outage that impacted a lot of businesses, Cramer said.
“That was not on him. It just happened to be bad luck. A lot of bad luck here,” Cramer said.
“The fact is that it was just an update, it was not a hack. And I think when things settle down people will go right back to George. We’ll forget about it three months from now.”
Although he acknowledged these things usually take 18 months to play out, Cramer anticipates a swift recovery for CrowdStrike shares because of the nature of the error and the response from the company.
“It will be shorter term because CrowdStrike has unbelievable technology and it was not their technology that was the problem, it was a sloppy update, of which he completely owned,” Cramer said.
CRWD Price Action: CrowdStrike shares are under pressure again Monday after several analysts lowered price targets following last week’s outage. The stock was down 12.5% at $266.89 at the time of publication, according to Benzinga Pro.
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