Market Mayhem: Crowdstrike's Plunge Amid Global Tech Outage

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So we're going to talk about presidential situation in a minute, but before we talk about that, we want to talk about the global tech out that happened last week that is still continuous. Six hundred flights got canceled today. Delta had a can six hundred flights today, So there's still ramifications of the global tech outage that happened last week still continuing this week.

And a major.

Player in that is CrowdStrike, a company that we've talked about a lot on the show, and as a result of that, their stock tumbled over the last two days Friday and today, So first thoughts on a global tech outage, but then also specifically CrowdStrike. So it's hovering around like two sixty five ish areas, so over thirty percent drop from it's fifty two week high. So would this be a buying opportunity for CrowdStrike?

Let's go fall more?

Truth be told, Probably need to wait till two forty nine seventy seven. Hell of a drop. Great company. This is now for those of you who have been in it. If you experienced twenty percent drop rule of thumb, please put it in chat. If it drops twenty percent and it's not a top five company, you need to sell it and repositioned in So two forty nine seventy seven if you buy it at seventy seven or two sixty cool. But I would be waiting for two forty nine seventy

Uh, losing twenty billion dollars in evaluation in the three day span is just it's tumultuous. It's a tough run for them, But it talks about the importance of cybersecurity. The most important thing I thought that came from it was like people heard the name CrowdStrike and then it became the number one thing searched on Google.

It was like nobody knew what this company was.

But it talks about the importance of cybersecurity when it can affect banks, when it confects travel, when it can affect large enterprise and can affect hospitals, and then it's customers as well, right, So you yeah, I mean it first started with Microsoft saying hey, we're down. And the interesting thing is that Microsoft has its own cybersecurity, but they were still using this platform. Obviously it was leading

Yeah, that.

You know, we spoke about market shares last week when we talk about Tesla inside the EV space. When when you talk about market shares inside of cybersecurity, when you ask the.

Question, are they better than Tesla?

And I was kind of like, nah, there's so much competition, those margins are a lot smaller, right, so they don't have eighteen percent market share, but like right next to them is Microsoft was seventeen percent, and I think Polo Alto is next up with probably.

Like fifteen percent.

And so you can see when an event like this happens from a company like this, when you're the number one in the space, you're gonna you're gonna lose.

Some clients and that's gonna happen. Does it still remain a great company? Yeah?

Will it be number one in the space that is in question is in high doubt, high doubt right now, But there are still people who still believe in it. I just saw Kathy Wood was just invested in twelve million, a.

Sign that is not going to do well. Look, Kathy, I love you, ark shot to the entire team. Y'all mean the world to me.

That is a sign that.

Is before before the situation was even resolved. You saw Elon said, look, we'll out we're no longer using this in any of us before they could even.

Fit fix the issue.

That doesn't help Microsoft obviously, you know this is a huge issue for them. They may look at it as like we don't need you as a client anymore. So yeah, I think the stock moves down a little bit more. We spoke about it in shout out to everybody in ey l u H and a few options called. But this is why it's like, yo. The long term is great. Leaps are great, but if you're going to do short term, be very calculated. If you have a percentage, hit your

Rights.

This is one of those things like count the blessing and say, is this an opportunity to watch it fall? Or do I take profit? Or do I reposition? I think those are the questions that people should ask. But it's a good question to ask yourself if you're in that position. But I think most importantly is that people have strategy and they didn't panic when they saw it overall for the week. I mean, it was a tough week,

Gross margins seventy five percent, profit margin two point nine to two percent.

You cannot get me to believe.

That because you did a single line of code out of billions of lines of code that have made a worldwide outage happen, or because you push an update to Falcon if you go on wickstock Com or score space, they got control measurements in place to make sure that when the update goes it does not mess up.

And then kudos to the CEO.

But when you went on seeing b see in three p sixty p I said, oh baby, not a good sign. I'm here to tell the truth today. When we get to the political commentary, I'm gonna even out and be responsible. But right now, CrowdStrike Paula Auto is on you. Microsoft

SATI is pissed enough.

Microsoft. I'm disappointed for you at the DEI decision. I want to be very clear about that. But SATI is not gonna let this fall on them. And then CrowdStrike you should have to. You have to look out for lawsuits that are going to come their way as a result of this. Fellas if you were going to book that flight, you got a good excuse to why you can't do it today, though tune in the blackout.

Maybe I was going to.

But they were adamanted about it not being a cyber attack. What's your thoughts on that. I think it was just an upgrade issue.

It was a world wide outage, and you want to have me believe that y'all messed up in the uploading of the.

New software program.

We've had Houston without power center point eight hundred million in mobile power units that never touch down in Houston. We'll get to that one day. Presidential attack or assassination attempt. President incumbent steps down, and you want to tell me that you didn't fuck up the code or the software push? Yeah, right, because if you say a cyber attack, you're out of business.

Soilverwick the largest in history, the largest outage in the history of the world.

Brosign's in the airports wild what yeah, yeah, Rest in peace, John McAfee. We're gonna have a conversation about John on blackout one day. But that's I got a call the International Monetary Fund mature protective first.

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