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HomeLatestCrowdStrike Shares Plummet Amid Global IT Outage

CrowdStrike Shares Plummet Amid Global IT Outage

A significant global IT outage has disrupted operations across various industries, including banking, airlines, telecommunications, broadcasting, and retail, as reported by the BBC on Friday. Major U.S. airlines such as American Airlines (NASDAQ:AAL), Delta Airlines (NYSE:DAL), and United Airlines (UAL) have experienced widespread grounding. Additionally, airports in Germany, Amsterdam, and Spain are grappling with operational challenges.

The precise cause of the outage remains unclear. However, some impacted parties are speculating that it may be linked to Microsoft’s (NASDAQ:MSFT) operating systems. Microsoft is currently working to address issues related to its 365 applications and services, which are reportedly in a “degraded state.”

Reports have surfaced suggesting that a recent software update from cybersecurity firm CrowdStrike (NASDAQ:CRWD) might be responsible for the disruptions. CrowdStrike, known for its antivirus solutions, is allegedly causing Windows devices to crash and display the notorious “blue screen of death.”

BBC’s technology editor, Zoe Kleinman, commented, “Whether these issues are related or if it’s a convergence of multiple problems remains uncertain. However, it appears to be a significant disruption.”

Cyber correspondent Joe Tidy noted, “The evidence points towards a CrowdStrike issue. If it were a Windows problem, the impact would likely be broader. The irony is that CrowdStrike, a cybersecurity company, is designed to protect against such outages.”

As a result of these developments, CrowdStrike’s shares plummeted by 13% in premarket trading on Friday.

The outage has also affected various locations in Europe. Ryanair, Europe’s largest airline by passenger numbers, has warned customers of potential disruptions affecting “all airlines operating across the network,” though the specifics of these disruptions remain unspecified.

At Edinburgh Airport, passengers faced difficulties with automated boarding pass scanners, and security monitors displayed a “server offline” message. The airport has reverted to manual boarding pass checks, according to a Reuters witness.

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