Microsoft Windows Update Causes Global IT Disruptions: CrowdStrike Loses $978M, Comerica Drops 10%

Laguna Beach, California, US., California United States of America
Comerica dropped 10% after being notified it would no longer be Direct Express debit card issuer
CrowdStrike lost $978M due to short selling windfall
Microsoft Windows update caused global IT disruptions
Microsoft Windows Update Causes Global IT Disruptions: CrowdStrike Loses $978M, Comerica Drops 10%

A global technology glitch caused widespread disruptions across various industries, including flights, banks, and medical offices. The root cause of the issue was identified as a faulty update sent to computers running Microsoft Windows. This update was reportedly responsible for causing IT outages and resulting in significant losses for some companies.

One such company that suffered substantial losses due to the botched software update was CrowdStrike Holdings Inc. (CRWD). The cybersecurity software firm experienced a massive short selling windfall, with short sellers making over $978 million in profits from their bets against the company after its stock plummeted following the outage.

The IT incident also affected Microsoft directly, causing computer crashes and resulting in grounded flights and canceled appointments. The impact on Microsoft was significant enough to result in approximately $14 million in negatively affected revenue during a previous similar incident back in 2010.

CrowdStrike's CEO, George Kurtz, addressed the situation during an interview with CNBC's Jim Cramer. The company was working on a method to fix the affected machines more quickly and had downplayed any long-term damage to its business.

The outage also impacted other companies such as Comerica Incorporated, which received a preliminary notification that it would no longer be the issuer of the Direct Express debit card for about 4.5 million federal benefit recipients. This news caused Comerica's stock to drop by over 10%.

The cybersecurity industry as a whole was put under scrutiny due to this incident, with experts like Richard Stiennon questioning the reliability of security solutions from companies such as CrowdStrike, SentinelOne, and Palo Alto Networks.

Despite the widespread disruptions caused by the technology glitch and its impact on various industries and companies, it is important to note that these incidents are rare. The vast majority of software updates are released without any major issues. However, when such incidents do occur, they can have significant consequences.


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Confidence

90%

Doubts
  • Is the impact on Microsoft's revenue from this incident an accurate representation of the financial loss?
  • Was CrowdStrike's CEO's downplaying of long-term damage to its business accurate?

Sources

95%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

CrowdStrike shares tumble as fallout from global tech outage continues

CNBC News Jordan Novet Monday, 22 July 2024 15:34
  • Unique Points
    • CrowdStrike said on Sunday that it was testing a method that would fix affected machines more quickly.
    • In 2010, a McAfee outage caused computer crashes and resulted in about $6 million of deferred revenue not recognized from the balance sheet and another approximately $14 million in negatively impacted revenue.
  • Accuracy
    • Short sellers made $978 million in profits from betting against CrowdStrike after a software update caused an IT outage and stock drop.
    • CrowdStrike reported a faulty update caused the issue affecting Microsoft Windows users, resulting in their stock plunging over 12%.
    • The botched software update led to a 23% two-day decrease in CrowdStrike's stock price.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    The article contains some instances of inflammatory rhetoric and an appeal to authority, but no formal or blatant logical fallacies were found. The author describes the situation as a 'global tech outage' that caused 'millions of Microsoft Windows devices offline', which creates a sense of urgency and importance. The author also quotes analysts from Guggenheim Securities and Goldman Sachs, implying their expertise and authority on the matter.
    • ][The article] describes the situation as a 'global tech outage' that caused 'millions of Microsoft Windows devices offline'.[[
    • Guggenheim Securities downgraded its rating on CrowdStrike shares to neutral from buy. Analysts led by John DiFucci said.
    • Goldman Sachs maintained their buy rating on CrowdStrike shares.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

98%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

CrowdStrike (CRWD) Outage Nets Short Sellers $461 Million Windfall

Bloomberg News Now Carmen Reinicke Monday, 22 July 2024 23:44
  • Unique Points
    • Short sellers made $978 million in profits from betting against CrowdStrike after a software update caused an IT outage and stock drop.
    • CrowdStrike short sellers have gained year to date with the July paper profits reaching nearly $1.5 billion.
  • Accuracy
    • Short sellers have gained year to date with the July paper profits reaching nearly $1.5 billion.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

75%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Global tech glitch sinks Wall Street as S&P 500 logs worst week since April

Fortune Media Inc. Stan Choe,The Friday, 19 July 2024 00:00
  • Unique Points
    • Cybersecurity firm CrowdStrike reported a faulty update caused the issue affecting Microsoft Windows users, resulting in their stock plunging over 12%.
    • Comerica dropped 10.5% after receiving a preliminary notification it would no longer be the issuer of the Direct Express debit card for about 4.5 million federal benefit recipients.
  • Accuracy
    • CrowdStrike reported a faulty update caused the issue affecting Microsoft Windows users, resulting in their stock plunging over 12%.
    • CrowdStrike shares slipped 13% during Monday’s trading session as the cybersecurity software company continued to help clients across industries recover from an outage that took millions of Microsoft Windows devices offline last week.
    • Short sellers made $978 million in profits from betting against CrowdStrike after a software update caused an IT outage and stock drop.
  • Deception (30%)
    The article contains selective reporting as it only reports details that support the author's position about the tech glitch causing stock market losses. It also uses emotional manipulation by describing long lines of frustrated fliers and using phrases like 'historic mistake' and 'markets are going to forgive them'. The article does not disclose sources.
    • CrowdStrike's stock plunged more than 15% as soon as trading began, but it then pared its loss to a drop of 12.2%.
    • The broad S&P 500 index is on track for its worst week since April.
    • The S&P 500 fell 0.7% Friday, its third straight drop since setting a record high on Tuesday.
  • Fallacies (85%)
    The author makes an appeal to authority when quoting Richard Stiennon's opinion on the CrowdStrike issue. He also uses inflammatory rhetoric when describing the technology outage as a 'historic mistake' by CrowdStrike and a 'disruptive technology outage'. However, no explicit fallacies are found in direct quotes from the author.
    • ][The markets] are going to forgive them, the customers are going to forgive them, and this will blow over.[//
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication