Crowdstrike shares have fallen significantly since the incident on the 19th July, from around $304 to $233.

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Crowdstrike shares have fallen significantly since the incident on the 19th July, from around $304 to $233. Not helped by both the incident and legal actions being launched, notable by Delta Airlines against both Crowdstrike and Microsoft. One waits for other companies to follow.

What may make this difficult for Crowdstrike is that it’s finances maynot withstand continued private legal action. Its free cash flow is not great, its revenues and profit are a fraction of the cost of the incident. One suspects the insurers will likely fight an insurance claim of this potential size.

Around 44% of the company’s stock is owned by Institutional Investors, 2% is owned by Insiders and 54% is owned by Public Companies and Individual Investors. Shareholders may sense trouble ahead.

One has to bare in mind Crowdstrike is not unique. As posted last week the cyber tech industry is heavily leveraged, and ROI is paramount. The investment community may now start asking difficult questions as the effect of such incidents becomes clearer, and ROI is effected.

Products must do what they say they do, with minimal disruption.

@Thaddeus Dziekanowski Brian D. McCarthy Rachel V. Rose, JD, MBA Ryan Buckner Faisal Khan Gerry Kennedy

Veritas GRC Senebria CrowdStrike

#cybersecurity #cyberriskmanagement

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