Both Microsoft (MSFT) and CrowdStrike (CRWD) stocks took a nosedive on Friday following a massive global IT outage. The glitch, originating late Thursday night, left businesses scrambling and tech giants reeling.
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Microsoft’s Fallout
Microsoft’s stock slipped over 2% in pre-market trading, dropping to $431 per share from Thursday’s close of $440.37. The company acknowledged the disruption, which impacted services worldwide, from airlines to banks. Reports of outages started around 3 p.m. in Australia, and quickly spread, causing chaos for users relying on Azure and Microsoft 365.
At the time of writing, MSFT is sitting at $440.37, down 3.24% in the past 5 days.
CrowdStrike’s Crash
CrowdStrike, the cybersecurity firm at the heart of this debacle, saw a jaw-dropping 20% plummet in its shares in U.S. premarket trading. The company’s recent update is suspected to have triggered the widespread issues. The fallout was swift, affecting various sectors, including supermarkets and airports. “It’s a nightmare scenario,” remarked one analyst, reflecting the sentiment across the market.
At the time of writing, CRWD stock is sitting at $343.05.
Market Impact
The fallout was immediate and widespread. Airlines like Delta and American grounded flights as the U.S. Federal Aviation Administration (FAA) closely monitored the technical issue affecting IT systems across U.S. airlines.
Several carriers requested the FAA’s assistance with ground stops. U.S. Secretary of Transportation Pete Buttigieg noted that the department was closely watching flight cancellations and delays, particularly at Frontier Airlines, and emphasized that all airlines would be held accountable for addressing passenger needs. This unprecedented event underscores the profound ripple effects that tech failures can have across multiple sectors, including even the healthcare system.
