CrowdStrike: I Know What You Did Last Friday - Upgrading To A Strong Buy

seekingalpha07-27

CrowdStrike Holdings, Inc. stock dipped over 17% since last Friday's global outage; I'm upgrading the stock from a buy to a strong buy.In my opinion, the stock presents an attractive buying window ...

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Kencom
07-27
Kencom
Already loaded up thousands of crowdstike shares. It will recover due to its sizeable specialised security support which consumers cannot do away with it easily, even there are competitors to compete & take up the gaps.

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I'm upgrading the stock from a buy to a strong buy.In my opinion, the stock presents an attractive buying window ...</p>\n\n<a href=\"https://seekingalpha.com/article/4707278-crowdstrike-i-know-what-you-did-last-friday-upgrading-to-a-strong-buy\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE00B4JS1V06.HKD","symbol_name":"JANUS HENDERSON BALANCED \"A2\" (HKD) ACC","start_time":0,"source_url":"https://seekingalpha.com/article/4707278-crowdstrike-i-know-what-you-did-last-friday-upgrading-to-a-strong-buy","article_id":"2454377919","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1255164588/image_1255164588.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2454377919","pubTimestamp":1722023672,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"CrowdStrike Holdings, Inc. stock dipped over 17% since last Friday's global outage; 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I'm upgrading the stock from a buy to a strong buy.In my opinion, the stock presents an attractive buying window after the 31% pullback this month, deflating some AI-led positives that had been priced in.My positive outlook from early July remains at play; I'm anticipating better top-line growth on the back of Falcon Flex and increased eight or more module deals.I share my thoughts on CrowdStrike here and why I see upside in FY2025.Guido Mieth/DigitalVision via Getty Images Investment thesis I'm upgrading CrowdStrike Holdings, Inc. (NASDAQ:CRWD) from a buy to a strong buy in light of last Friday's events and the pullback that followed. The stock was down over 14% on Friday and has been down around 17% since. I last wrote on CrowdStrike early this month with a positive thesis, arguing that \"CrowdStrike stock will see more upside due to its strategic position in the cybersecurity space amid the AI moment through its AI-native Falcon Flex subscription model\" and increased eight or more module deals. The stock underperforms the S&P 500 by ~32% since my initiating with a buy. I stand behind my positive thesis on CrowdStrike, despite investor panic that caused the stock to trade off. I continue to see more upside for CrowdStrike as a leader in endpoint security going into 2025. In my opinion, the stock presents a very attractive buying opportunity after the massive pullback since Friday that deflated some AI-led positives priced into the stock. CrowdStrike is down over 31% over the last month versus the S&P500, down 0.39%. The company has a firm footing in the cybersecurity space, and I see more upside after the events of Friday, which I'll get to shortly, subside. YCharts What Happened: Technical Lens Based on CrowdStrike's Preliminary Post Incident Review, the following is what happened on July 19th.  Part of the company's regular operations is to release a \"content configuration update for Windows sensor\" for the Falcon platform The Rapid Response Content uses a highly optimized engine and is stored in a \"proprietary file that contains configuration data\" meaning it's not a code nor a \"kernel driver.\" The problematic Rapid Response Content configuration update contained an \"undetected error\" and crashed over 8.5 Windows-run devices. Three rounds of testing were performed starting February 28th, 2024, and all the IPC Templates \"performed as expected in production.\" On July 19th, two IPC Template Instances were added, and a bug in the content validator for one of them caused the BSOD (Windows operating system crash), hence resulting in a worldwide outage.  The aftermath The entire world awoke to a bitter taste in its mouth called the \"Blue Screen of Death,\" and CrowdStrike is to blame. Through a post on X, CrowdStrike CEO George Kurtz said the outage was not a \"cyberattack\" but a \"defect found in a single content update for Windows hosts,\" affecting over 8.5 million Windows devices. From what we know now, the issue was because of CrowrdStrike's Falcon, where a \"bug\" in the Content Validator didn't get flagged despite \"containing problematic content data,\" causing a worldwide disruption in several key sectors (airlines, healthcare, banking). The issue was resolved for the most part later on Friday, but numerous companies required manual work to reboot their systems, and others dealt with backlogs after the fact. The incident had such a wide scale that, on Monday, the U.S. House of Representatives Homeland Security Committee wrote to CEO Kurtz and asked him to testify; the letter read that while the congressional panel is appreciative of CrowdStrike's response, \"some have claimed [this] is the largest IT outage in history.\" For me, this showcases how embedded CrowdStike's products are in the global community. This was less of a positive for others, as the Insured losses from the event are expected to be around $540 million-$1.08 billion for Fortune 500 companies. Parametrix CEO Jonatan Hatzor said the crash was the biggest \"accumulation event we ever saw in cyber insurance\" and that it \"traveled very fast and was very global.\" As for the global financial losses, Hatzor said they are estimated to be around $15 billion. Elon Musk posted on X that CrowdStrike has been \"deleted from all our systems, so no rollouts,\" but according to trusted sources, numerous employees in a couple of states were sent home early on Friday, and staff received notice that systems were impacted. I believe this is just another add fuel to the fire situation; Musk didn't go into specifics regarding what part of his operations doesn't use CrowdStrike anymore and hence inflated investor panic. But the glass is half-full on this side. In my opinion, CrowdStrike's response and the steps it took after the fact, through supporting partners and customers and implementing new software resiliency and testing procedures, show that the company is ready to face unexpected and unprecedented errors. I know it was no joke, and the extent of the damage is significant, but management's disciplined execution after the fact reflects how well-equipped CrowdStrike is to be at the center of a worldwide outage. The company already came up with a post-incident strategy to ensure this is the first and last time:  The company is improving the Rapid Response Content testing by using five more testing types: local developer testing, content update, and rollback testing, stress testing, fuzzing and fault ejection, stability testing, and content interface testing. CrowdStrike will also add validation checks to \"guard against this type of problematic content from being deployed in the future\" and improve its error handling. The company will also implement a \"staggered deployment strategy for Rapid Response Content,\" improve monitoring, give customers more control, and provide update details through release notes. Lastly, CrowdStrike will allow independent third-party validations.  Seeing as this was a \"bug\" and not a cyberattack, I think everyone was worried about the wrong incident; with that being said, I believe Okta's October breach last year warranted a bigger reaction. The world is on edge with increased cybercrime over the last few years, and I wrote about this in my Okta, Inc. (OKTA) article. I think this awoke a fear we all share amid a fast-changing industry; all this should be less about CrowdStrike and more about how \"disruptive and malicious and widespread cyberattack could be.\" What's next? But then again, a company with such operational excellence and healthy fundamentals should recover; I see this as merely market chatter, and I expect CrowdStrike to have minimal downside in the long term. The panic will be over before we know it, and I advise investors to buy the dip.  I stick with my thesis and expect to see \"net retention rates growth and top-line beating expectations for FY25, driven by new customers and multiple module deals combining eight or more modules.\" CrowdStrike is instrumental to many businesses globally. SentinelOne, Inc. (S) stock soared in reaction to the outage, and people assumed I would be the next CrowdStrike; I'm not too worried about that happening. On the contrary, I see this as another marker of CrowdStrike's global and vital position in the cybersecurity sector. With Falcon, I don't see anyone dethroning CrowdStrike as a leader in end-point security.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"Business Data","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[{"id":331889218359520,"gmtCreate":1722035354385,"gmtModify":1722035358486,"author":{"id":"4088748055325860","authorId":"4088748055325860","authorIdStr":"4088748055325860","name":"Kencom","avatar":"https://community-static.tradeup.com/news/bcaa9548fb78e0409a2827c590935dab","vip":1,"crmLevel":7,"crmLevelSwitch":1,"idStr":"4088748055325860"},"htmlText":"Already loaded up thousands of crowdstike shares. It will recover due to its sizeable specialised security support which consumers cannot do away with it easily, even there are competitors to compete &amp; take up the gaps.","listText":"Already loaded up thousands of crowdstike shares. It will recover due to its sizeable specialised security support which consumers cannot do away with it easily, even there are competitors to compete &amp; take up the gaps.","text":"Already loaded up thousands of crowdstike shares. It will recover due to its sizeable specialised security support which consumers cannot do away with it easily, even there are competitors to compete & take up the gaps.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/331889218359520","repostId":2454377919,"repostType":2,"repost":{"id":"2454377919","pubTimestamp":1722023672,"share":"https://ttm.financial/m/news/2454377919?lang=&edition=fundamental","pubTime":"2024-07-27 03:54","market":"sh","language":"en","title":"CrowdStrike: I Know What You Did Last Friday - Upgrading To A Strong Buy","url":"https://stock-news.laohu8.com/highlight/detail?id=2454377919","media":"seekingalpha","summary":"CrowdStrike Holdings, Inc. stock dipped over 17% since last Friday's global outage; I'm upgrading the stock from a buy to a strong buy.In my opinion, the stock presents an attractive buying window aft","content":"<html><body><ul><li><a href=\"https://laohu8.com/S/CRWD\">CrowdStrike Holdings, Inc.</a> stock dipped over 17% since last Friday's global outage; I'm upgrading the stock from a buy to a strong buy.</li><li>In my opinion, the stock presents an attractive buying window after the 31% pullback this month, deflating some AI-led positives that had been priced in.</li><li>My positive outlook from early July remains at play; I'm anticipating better top-line growth on the back of Falcon Flex and increased eight or more module deals.</li><li>I share my thoughts on CrowdStrike here and why I see upside in FY2025.</li></ul><p><figure><picture><img fetchpriority=\"high\" height=\"1025px\" sizes=\"(max-width: 768px) calc(100vw - 36px), (max-width: 1024px) calc(100vw - 132px), (max-width: 1200px) calc(66.6vw - 72px), 600px\" src=\"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1255164588/image_1255164588.jpg?io=getty-c-w750\" srcset=\"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1255164588/image_1255164588.jpg?io=getty-c-w1536 1536w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1255164588/image_1255164588.jpg?io=getty-c-w1280 1280w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1255164588/image_1255164588.jpg?io=getty-c-w1080 1080w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1255164588/image_1255164588.jpg?io=getty-c-w750 750w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1255164588/image_1255164588.jpg?io=getty-c-w640 640w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1255164588/image_1255164588.jpg?io=getty-c-w480 480w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1255164588/image_1255164588.jpg?io=getty-c-w320 320w, https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1255164588/image_1255164588.jpg?io=getty-c-w240 240w\" width=\"1536px\"/></picture><figcaption><p>Guido Mieth/DigitalVision via Getty Images</p></figcaption></figure></p> <h2>Investment thesis</h2> <p>I'm upgrading <b>CrowdStrike Holdings, Inc.</b> (<span>NASDAQ:CRWD</span>) from a buy to a strong buy in light of last Friday's events and the pullback that followed. The stock was down over 14% on Friday and<span> has been down around 17% since. I last </span>wrote<span> on CrowdStrike early this month with a positive thesis, arguing that \"CrowdStrike stock will see more upside due to its strategic position in the cybersecurity space amid the AI moment through its AI-native Falcon Flex subscription model\" and increased eight or more module deals. The stock underperforms the S&amp;P 500 by ~32% since my initiating with a buy. I stand behind my positive thesis on CrowdStrike, despite investor panic that caused the stock to trade off.</span></p> <p>I continue to see more upside for CrowdStrike as a leader in endpoint security going<span> into 2025. In my opinion, the stock presents a very attractive buying opportunity after the massive pullback since Friday that deflated some AI-led positives priced into the stock. CrowdStrike is down over 31% over the last month versus the S&amp;P500, down 0.39%. The company has a firm footing in the cybersecurity space, and I see more upside after the events of Friday, which I'll get to shortly, subside.</span></p> <p><figure contenteditable=\"false\"><picture><img contenteditable=\"false\" loading=\"lazy\" src=\"https://static.seekingalpha.com/uploads/2024/7/26/saupload_526bc56f3c46c50f6c6f817271ecda6a.png\"/></picture><figcaption><p>YCharts</p></figcaption></figure></p> <h2>What Happened: Technical Lens</h2> <p><strong>Based on CrowdStrike's Preliminary Post Incident Review, the following is what happened on July 19th.</strong></p> <ul> <li><p>Part of the company's regular operations is to release a \"content configuration update for Windows sensor\" for the Falcon platform</p></li> <li><p>The Rapid Response Content uses a highly optimized engine and is stored in a \"proprietary file that contains configuration data\" meaning it's not a code nor a \"kernel driver.\"</p></li> <li><p>The problematic Rapid Response Content configuration update contained an \"undetected error\" and crashed over 8.5 Windows-run devices.</p></li> <li><p>Three rounds of testing were performed starting February 28th, 2024, and all the IPC Templates \"performed as expected in production.\"</p></li> <li><p>On July 19th, two IPC Template Instances were added, and a bug in the content validator for one of them caused the BSOD (Windows operating system crash), hence resulting in a worldwide outage.</p></li> </ul> <h2>The aftermath</h2> <p>The entire world awoke to a bitter taste in its mouth called the \"Blue Screen of Death,\" and CrowdStrike is to blame. Through a post on X, CrowdStrike CEO George Kurtz said the outage was not a \"cyberattack\" but a \"defect found in a single content update for Windows hosts,\" affecting over 8.5 million Windows devices. From what we know now, the issue was because of CrowrdStrike's Falcon, where a \"bug\" in the Content Validator didn't get flagged despite \"containing problematic content data,\" causing a worldwide disruption in several key sectors (airlines, healthcare, banking). The issue was resolved for the most part later on Friday, but numerous companies required manual work to reboot their systems, and others dealt with backlogs after the fact. The incident had such a wide scale that, on Monday, the U.S. House of Representatives Homeland Security Committee wrote to CEO Kurtz and asked him to testify; the letter read that while the congressional panel is appreciative of CrowdStrike's response, \"some have claimed [this] is the largest IT outage in history.\" For me, this showcases how embedded CrowdStike's products are in the global community.</p> <p>This was less of a positive for others, as the Insured losses from the event are expected to be around $540 million-$1.08 billion for Fortune 500 companies. Parametrix CEO Jonatan Hatzor said the crash was the biggest \"accumulation event we ever saw in cyber insurance\" and that it \"traveled very fast and was very global.\" As for the global financial losses, Hatzor said they are estimated to be around $15 billion.</p> <p>Elon Musk posted on X that CrowdStrike has been \"deleted from all our systems, so no rollouts,\" but according to trusted sources, numerous employees in a couple of states were sent home early on Friday, and staff received notice that systems were impacted. I believe this is just another <em>add fuel to the fire</em> situation; Musk didn't go into specifics regarding what part of his operations doesn't use CrowdStrike anymore and hence inflated investor panic.</p> <p>But the glass is half-full on this side. In my opinion, CrowdStrike's response and the steps it took after the fact, through supporting partners and customers and implementing new software resiliency and testing procedures, show that the company is ready to face unexpected and unprecedented errors. I know it was no joke, and the extent of the damage is significant, but management's disciplined execution after the fact reflects how well-equipped CrowdStrike is to be at the center of a worldwide outage. The company already came up with a post-incident strategy to ensure this is the first and last time:</p> <ul> <li><p>The company is improving the Rapid Response Content testing by using five more testing types: local developer testing, content update, and rollback testing, stress testing, fuzzing and fault ejection, stability testing, and content interface testing.</p></li> <li><p>CrowdStrike will also add validation checks to \"guard against this type of problematic content from being deployed in the future\" and improve its error handling.</p></li> <li><p>The company will also implement a \"staggered deployment strategy for Rapid Response Content,\" improve monitoring, give customers more control, and provide update details through release notes.</p></li> <li><p>Lastly, CrowdStrike will allow independent third-party validations.</p></li> </ul> <p>Seeing as this was a \"bug\" and not a cyberattack, I think everyone was worried about the wrong incident; with that being said, I believe Okta's October breach last year warranted a bigger reaction. The world is on edge with increased cybercrime over the last few years, and I wrote about this in my Okta, Inc. (OKTA) article. I think this awoke a fear we all share amid a fast-changing industry; all this should be less about CrowdStrike and more about how \"disruptive and malicious and widespread cyberattack could be.\"</p> <h2>What's next?</h2> <p>But then again, a company with such operational excellence and healthy fundamentals should recover; I see this as merely market chatter, and I expect CrowdStrike to have minimal downside in the long term. The panic will be over before we know it, and I advise investors to buy the dip.</p> <div></div> <p>I stick with my thesis and expect to see \"net retention rates growth and top-line beating expectations for FY25, driven by new customers and multiple module deals combining eight or more modules.\" CrowdStrike is instrumental to many businesses globally. <a href=\"https://laohu8.com/S/S\">SentinelOne, Inc</a>. (S) stock soared in reaction to the outage, and people assumed I would be the next CrowdStrike; I'm not too worried about that happening. On the contrary, I see this as another marker of CrowdStrike's global and vital position in the cybersecurity sector. With Falcon, I don't see anyone dethroning CrowdStrike as a leader in end-point security.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>CrowdStrike: I Know What You Did Last Friday - Upgrading To A Strong Buy</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCrowdStrike: I Know What You Did Last Friday - Upgrading To A Strong Buy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-27 03:54 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4707278-crowdstrike-i-know-what-you-did-last-friday-upgrading-to-a-strong-buy><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>CrowdStrike Holdings, Inc. stock dipped over 17% since last Friday's global outage; I'm upgrading the stock from a buy to a strong buy.In my opinion, the stock presents an attractive buying window ...</p>\n\n<a href=\"https://seekingalpha.com/article/4707278-crowdstrike-i-know-what-you-did-last-friday-upgrading-to-a-strong-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1255164588/image_1255164588.jpg","relate_stocks":{"IE00B4JS1V06.HKD":"JANUS HENDERSON BALANCED \"A2\" (HKD) ACC","BK4585":"ETF&股票定投概念","IE00BZ9MQY76.HKD":"FTGF CLEARBRIDGE US AGGRESSIVE GROWTH \"A\" (HKD) ACC","BK4576":"AR","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","LU1974910355.USD":"Allianz Thematica Cl AMg DIS USD","BK4566":"资本集团","LU1548497426.USD":"安联环球人工智能AT Acc","LU1923622614.USD":"Natixis Thematics Meta R/A USD","BK4525":"远程办公概念","BK4587":"ChatGPT概念","IE0004091025.USD":"BNY MELLON GLOBAL OPPORTUNITIES \"B\" (USD) ACC","IE00BJTD4V19.USD":"NEUBERGER BERMAN US LONG SHORT EQUITY \"A1\" (USD) ACC","IE00BDCRKT87.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"ADC\" (USD) INC","BK4577":"网络游戏","LU2125909759.SGD":"Natixis Thematics Safety H-R/A SGD","BK4527":"明星科技股","BK4579":"人工智能","LU2125909916.SGD":"Natixis Thematics Safety R/A SGD","BK4588":"碎股","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","LU1992135399.USD":"Allianz Global Intelligent Cities AT Acc USD","BK4503":"景林资产持仓","LU1923622291.USD":"Natixis Thematics Safety R/A USD","LU2023250504.SGD":"Allianz Thematica Cl AMg DIS H2-SGD","OKTA":"Okta Inc.","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","BK4551":"寇图资本持仓","IE00BFXG0V08.USD":"BNY MELLON GLOBAL LEADERS \"B\" (USD) ACC","BK4561":"索罗斯持仓","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","BK4560":"网络安全概念","IE00B5949003.HKD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A\" (HKD) ACC","BK4581":"高盛持仓","BK4504":"桥水持仓","IE0005OL40V9.USD":"JANUS HENDERSON BALANCED \"A6M\" (USD) INC","IE00B19Z8X17.USD":"FTGF CLEARBRIDGE US LARGE CAP GROWTH  \"AG\" (USD) ACC","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","BK4528":"SaaS概念","BK4516":"特朗普概念","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","LU1917777945.USD":"安联专题基金Cl AT Acc","BK4592":"伊斯兰概念","IE00B19Z8W00.USD":"FTGF CLEARBRIDGE US LARGE CAP GROWTH \"A\" INC","CRWD":"CrowdStrike Holdings, Inc."},"source_url":"https://seekingalpha.com/article/4707278-crowdstrike-i-know-what-you-did-last-friday-upgrading-to-a-strong-buy","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2454377919","content_text":"CrowdStrike Holdings, Inc. stock dipped over 17% since last Friday's global outage; I'm upgrading the stock from a buy to a strong buy.In my opinion, the stock presents an attractive buying window after the 31% pullback this month, deflating some AI-led positives that had been priced in.My positive outlook from early July remains at play; I'm anticipating better top-line growth on the back of Falcon Flex and increased eight or more module deals.I share my thoughts on CrowdStrike here and why I see upside in FY2025.Guido Mieth/DigitalVision via Getty Images Investment thesis I'm upgrading CrowdStrike Holdings, Inc. (NASDAQ:CRWD) from a buy to a strong buy in light of last Friday's events and the pullback that followed. The stock was down over 14% on Friday and has been down around 17% since. I last wrote on CrowdStrike early this month with a positive thesis, arguing that \"CrowdStrike stock will see more upside due to its strategic position in the cybersecurity space amid the AI moment through its AI-native Falcon Flex subscription model\" and increased eight or more module deals. The stock underperforms the S&P 500 by ~32% since my initiating with a buy. I stand behind my positive thesis on CrowdStrike, despite investor panic that caused the stock to trade off. I continue to see more upside for CrowdStrike as a leader in endpoint security going into 2025. In my opinion, the stock presents a very attractive buying opportunity after the massive pullback since Friday that deflated some AI-led positives priced into the stock. CrowdStrike is down over 31% over the last month versus the S&P500, down 0.39%. The company has a firm footing in the cybersecurity space, and I see more upside after the events of Friday, which I'll get to shortly, subside. YCharts What Happened: Technical Lens Based on CrowdStrike's Preliminary Post Incident Review, the following is what happened on July 19th.  Part of the company's regular operations is to release a \"content configuration update for Windows sensor\" for the Falcon platform The Rapid Response Content uses a highly optimized engine and is stored in a \"proprietary file that contains configuration data\" meaning it's not a code nor a \"kernel driver.\" The problematic Rapid Response Content configuration update contained an \"undetected error\" and crashed over 8.5 Windows-run devices. Three rounds of testing were performed starting February 28th, 2024, and all the IPC Templates \"performed as expected in production.\" On July 19th, two IPC Template Instances were added, and a bug in the content validator for one of them caused the BSOD (Windows operating system crash), hence resulting in a worldwide outage.  The aftermath The entire world awoke to a bitter taste in its mouth called the \"Blue Screen of Death,\" and CrowdStrike is to blame. Through a post on X, CrowdStrike CEO George Kurtz said the outage was not a \"cyberattack\" but a \"defect found in a single content update for Windows hosts,\" affecting over 8.5 million Windows devices. From what we know now, the issue was because of CrowrdStrike's Falcon, where a \"bug\" in the Content Validator didn't get flagged despite \"containing problematic content data,\" causing a worldwide disruption in several key sectors (airlines, healthcare, banking). The issue was resolved for the most part later on Friday, but numerous companies required manual work to reboot their systems, and others dealt with backlogs after the fact. The incident had such a wide scale that, on Monday, the U.S. House of Representatives Homeland Security Committee wrote to CEO Kurtz and asked him to testify; the letter read that while the congressional panel is appreciative of CrowdStrike's response, \"some have claimed [this] is the largest IT outage in history.\" For me, this showcases how embedded CrowdStike's products are in the global community. This was less of a positive for others, as the Insured losses from the event are expected to be around $540 million-$1.08 billion for Fortune 500 companies. Parametrix CEO Jonatan Hatzor said the crash was the biggest \"accumulation event we ever saw in cyber insurance\" and that it \"traveled very fast and was very global.\" As for the global financial losses, Hatzor said they are estimated to be around $15 billion. Elon Musk posted on X that CrowdStrike has been \"deleted from all our systems, so no rollouts,\" but according to trusted sources, numerous employees in a couple of states were sent home early on Friday, and staff received notice that systems were impacted. I believe this is just another add fuel to the fire situation; Musk didn't go into specifics regarding what part of his operations doesn't use CrowdStrike anymore and hence inflated investor panic. But the glass is half-full on this side. In my opinion, CrowdStrike's response and the steps it took after the fact, through supporting partners and customers and implementing new software resiliency and testing procedures, show that the company is ready to face unexpected and unprecedented errors. I know it was no joke, and the extent of the damage is significant, but management's disciplined execution after the fact reflects how well-equipped CrowdStrike is to be at the center of a worldwide outage. The company already came up with a post-incident strategy to ensure this is the first and last time:  The company is improving the Rapid Response Content testing by using five more testing types: local developer testing, content update, and rollback testing, stress testing, fuzzing and fault ejection, stability testing, and content interface testing. CrowdStrike will also add validation checks to \"guard against this type of problematic content from being deployed in the future\" and improve its error handling. The company will also implement a \"staggered deployment strategy for Rapid Response Content,\" improve monitoring, give customers more control, and provide update details through release notes. Lastly, CrowdStrike will allow independent third-party validations.  Seeing as this was a \"bug\" and not a cyberattack, I think everyone was worried about the wrong incident; with that being said, I believe Okta's October breach last year warranted a bigger reaction. The world is on edge with increased cybercrime over the last few years, and I wrote about this in my Okta, Inc. (OKTA) article. I think this awoke a fear we all share amid a fast-changing industry; all this should be less about CrowdStrike and more about how \"disruptive and malicious and widespread cyberattack could be.\" What's next? But then again, a company with such operational excellence and healthy fundamentals should recover; I see this as merely market chatter, and I expect CrowdStrike to have minimal downside in the long term. The panic will be over before we know it, and I advise investors to buy the dip.  I stick with my thesis and expect to see \"net retention rates growth and top-line beating expectations for FY25, driven by new customers and multiple module deals combining eight or more modules.\" CrowdStrike is instrumental to many businesses globally. SentinelOne, Inc. (S) stock soared in reaction to the outage, and people assumed I would be the next CrowdStrike; I'm not too worried about that happening. On the contrary, I see this as another marker of CrowdStrike's global and vital position in the cybersecurity sector. With Falcon, I don't see anyone dethroning CrowdStrike as a leader in end-point security.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":1,"commentSize":1,"repostSize":2,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.26.3","shortVersion":"4.26.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2454377919"}