Half of the Fortune 500 companies – 80% of financial and tech firms, 60% of healthcare providers, and most major airlines – are CrowdStrike clients. They pay CrowdStrike handsomely to prevent disruptions. Instead CrowdStrike caused the most critical IT disruption in history.
Various hospitals, banks, and 911 emergency services are processing everything without computers. Worldwide IT teams are looking at days or weeks manually fixing each computer.
This is a trillion dollar fuckup that likely killed people.
They will be sued.
IT admins everywhere will reject their product moving forward and switch to SentinelOne, Carbon Black, or other competitors. (if you don't believe me, check /r/sysadmin)
Yet their stock is only down 10%.
With a staggering PE ratio of 609.
What is going on?!
Posted by nevesis
36 Comments
dip buyers holding it up like atlas
Trades don’t have to be rational. Example: every DD post ever made in this sub.
Brand recognition.
Forever remembered for the biggest IT failure in the history of the world.
BTC is 67000, and you want rational ?
When the lawsuits pile up, dip buyers will bail. Long puts should print handsomely.
Better question , how did this even happen. Something like this didn’t show up in testing ????
There was a second programmer (get it )
$200 soon, if not lower
you answered with first 2 sentences
The people behind the curtain propping it up
I think a big part of it is the average investor not really understand (a) the extent of their fuck up and (b) not realizing it was Crowdstrike’s fault (lots of news initially blamed Microsoft)
Everyone bought puts so MM have to wait till they expire
I bought that dip my boy
I’m wondering the same thing. This stock will see $200 again if not lower.
Their whole valuation is build on a growth story. Even if they keep all their customers and are not getting ripped to shreds by lawsuits, how will they grow after today? Who is gonna buy their product?
Give it time. The client stories, lawsuits, fed inquiries, and customer attrition will come. And with it, the market will recalibrate Clownstrike’s market cap accordingly.
Damn, this post should’ve posted in the morning to prevent me from buying the dip.😢
So Crowdstrike offers up to a 1 million dollar warranty “If there is a security incident within the environment protected by Crowdstrike’s Falcon Complete”
This outage could classify as a security breach. I’ll have to dive into the entirety of the fine print but I wonder if they will have to pay out all breach warranties?
This reminds me of the Equifax leak. Recovered quickly. TBTF.
IT admins don’t negotiate contracts with 3rd party solutions, their executive management overlords do. The cost to shift products greatly reduces a shift in strategic enterprise solutions with any sort of speed. If CrowdStrike walks the PR line over the coming weeks as I suspect they are working around the clock to do at this point, there will not be near the exodus you think will happen (even if it is absolutely deserved). If they fail at that and any blip in the radar happens from here, then I would agree there will be tangible moves elsewhere.
It’s already priced in
https://preview.redd.it/iifo1u579mdd1.png?width=680&format=png&auto=webp&s=2760e41bf7db9a2f122539eddd8fb5280eed6041
I am in tech and this post/comments tell me that people don’t know a shit about tech here. CrowdStrike isn’t going anywhere. Lawsuits for bugs? Lol
Explain to me how the first put I’ve ever bought is on this fucking company on the day they took half the world down and I’m down 50%.
I think it will dip lower because all the lawsuits they will be facing. But I think those companies will still use crowdstrike because change to other solutions cost even more money
Sounds like they got a lot of contract/consulting work lined up over the few qtrs.
>IT admins everywhere will reject their product moving forward and switch to SentinelOne, Carbon Black, or other competitors.
Not really, once the dust settles. The product is still solid. This could happen to competitors, too.
There will be massive backlash, but sysadmins will have a few beers and get over this.
I do agree that the lawsuits will be tremendous.
My prediction is 150-170 range – where it has 12 months ago.
The results will be in on Monday.
Is it a nothing burger? Did large companies get data / services / etc wiped? How did this happen? There’s more to this and the timing is suspicious.
2 spy calls bought at 559
1 put call bought at 554
>They will be sued.
Lol, yes and since class action/tort law is so swift and unforgiving in its judgements of corporate malpractice, CrowdStrike will clearly be paying everyone back every dollar that was lost by next Friday. /s
in maybe a decade they’ll pay back part of what they cost everyone and it’ll all be ‘priced in’ by then so the stock price probably won’t suffer that much.
The only thing I learned today was crowdstrike can shutdown the world if they wanted too and that’s bullish
I heard Cathie Woods bought the dip so CRWD should be due for another 10% correction 
Too many puts at 300 strike, megamoney couldn’t let them print
they are going to loose billions in business- cimpanies will diversify, countrieswill have laws, policies and regulations in place to make it more restrictive- what are the alternative options though?
Thinking people believe more in the other services?
The market can stay irrational longer than you can stay solvent
I’m currently in Chicago O’Hare airport where I was supposed to catch my connecting flight at around 7pm Friday night (already pushed back from 6:00).
They kept adding 30 minute delays and cock teased us with that shit for over 7 hours before finally just straight up cancelling the flight entirely. And everyone else in this whole airport is having the same thing happen to them.
It is now 2:35 Saturday morning and they can’t get me another flight home until Monday. All the hotel vouchers from the airline have already been used, and most hotels in the area in general are booked anyway because of this shit- except the ones in the shittiest part of town or the super expensive ones.
Now multiply that by apparently every airport around the world.
I’m on government travel so I’ve been trying to call SATO to see if there’s anything they can do for me. I’ve been on hold with them for two hours. I imagine there’s a metric fuckton of other government employees trying to do the same thing.
Now- none of that is as awful as lives being lost to this shit- but I’m with OP in wondering how CrowdStrike isn’t being absolutely annihilated right now. I wouldn’t be shocked if this shit leads to their bankruptcy, and frankly, I hope that it does.
Also- fuck United Airlines.
Relax, the junior developer who deployed the bad code will be back on Monday 
Lastpass got hacked and lost customer confidence. Soon they were up for sale. I don’t think any major corporation uses Lastpass anymore. CRWD will follow similar path. This could be a reckoning for the cyber security space.