CrowdStrike manages to regain market value after causing the largest IT failure in history
- CrowdStrike says it has regained $30 million in market value as stock prices rise
- The company retained 97% of its customers after the outage in July 2024
- CrowdStrike says accountability and quick action helped the recovery
CrowdStrike has revealed that it has successfully regained much of the market value it lost after the major outage in July 2024 that affected its products.
Shares in the company had fallen to a low of $217.89 due to a decline in investor confidence, but CrowdStrike has been working hard to rectify this.
Now shares are approaching $360 as the company begins to rebuild market confidence, having regained $30 billion in value since the incident.
CrowdStrike recovery
The company says the increase is mainly due to customer satisfaction. In the financial quarter of the incident, the company still managed to retain 97% of its customers.
CEO George Kurtz told the Financial times in an interview: “Customers stay with us.”
He added: “We had a customer who said broken bones are healing stronger and they don’t expect this to happen again. Conversely, from a competitive perspective, if something like this hasn’t happened yet, there’s probably more risk.
Despite signs of recovery, CrowdStrike has faced its fair share of criticism, including a $500 million lawsuit by Delta Airlines, one of the hardest-hit companies, which grounded more than 7,000 flights as part of the widespread outage that affected an estimated 8.5 million broke windows. servers.
Although the impact was felt worldwide, SVP Adam Meyers emphasized during a hearing that the incident was not the result of a cyber attack. This strengthens the company’s commitment to cybersecurity in a year when more and more threats have been fueled by generative AI.
The company’s quick response and acceptance of responsibility have also helped restore confidence. Mauricio Sanchez, senior director of enterprise security and network research at Dell’Oro Group, said (via Cyber security disk): “Kurtz’s quick apologies for a faulty software update are rare in cybersecurity – I can’t think of another case – but reflect a growing trend of corporate responsibility.”
The CEO went to a company blog post to “sincerely apologize” for the incident just days after it occurred, emphasizing the importance of trusting customers and partners.