Name of opportunity: 👀
CrowdStrike Holdings, Inc
Crash - computer systems down worldwide: 💥
Computer systems running on the Microsoft operating system Windows 10 were affected today, particularly in the US, Europe, Australia and New Zealand. It was quickly identified that the issue was a bug in an update, rather than malicious activity. However, while CrowdStrike reported that “a fix has been deployed”, many services were disrupted in ways that will take a significant amount of time to get back on track. In the UK, NHS computer systems were unable to display patient records, affecting thousands of people who were trying to access medical help. Air travel has been majorly disrupted, with passengers on flights booked using Indian airline IndiGo unable to check in, and long queues gathering at airports around Europe.
How hot is this investment opportunity? 🔥🔥
CrowdStrike stock dropped significantly today, and there could be a risk of reputational damage for CrowdStrike. If this caused the cybersecurity company to lose clients, it could potentially affect revenue and future growth. However, analyst Dan Ives at Wedbush Securities said he does not think this incident will affect public opinion on CrowdStrike and the cybersecurity sector long term, although it has been highly disruptive - he suggested CrowdStrike’s strong brand would help it maintain its reputation.
Could this be a good opportunity to get in on CrowdStrike at a lower price than usual? The stock is now down 8.55% today, recovering after its initial drop, but analysts say the price of CrowdStrike Holdings, Inc. will increase from $299.98 to $399.56 in the next 12 months. If you invested $1000, you might profit $164.72.
Part of the reason for this predicted increase in value is that analysts think the stock will bounce back from its decline today. However, CrowdStrike has also been in the news recently as an example of a high performing cybersecurity company, with analysts at The Motley Fool identifying it as a leader in the space earlier this month. They predicted that it will likely remain a dominant force in cybersecurity in the years to come, thanks to its strong position now. CrowdStrike’s management team also reported recently that they think the market opportunity for the software could increase by 125% by 2028, to reach US$225 billion.
Cybersecurity: 🛡️
CrowdStrike is valued at over US$80 billion and is used by more than 50% of Fortune 500 companies. It provides the software Falcon on a software as a service (SaaS) basis to organisations and businesses across government, healthcare, education, financial services, and retail, catering to organisations of any size. It was founded in 2011 and expanded with a number of acquisitions mostly after 2020. CrowdStrike employs 8429 people and is based in Texas, US.
Which neme?: 🔍
‘Saas & Cloud Computing’, ‘Stocks on the Move’, ‘Biggest Losers Today’
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