Investment Manager’s Insider Scoop: Delta (NYSE: DAL) Seeks Damages from CrowdStrike (NASDAQ: CRWD) and Microsoft (NASDAQ: MSFT) – Here’s What You Need to Know
Delta Airlines has been hit hard by a recent outage caused by CrowdStrike, resulting in the cancellation of over 6,000 flights and losses of up to $500 million. To recover these damages, Delta has hired top attorney David Boies to go after CrowdStrike and Microsoft. This move has caused DAL stock to see a slight increase in early morning trading.
CrowdStrike, on the other hand, is facing backlash from its customers who are considering cutting back on spending and asking for price cuts in light of the outage. This has led to a 30% drop in CrowdStrike’s shares since July 12, with a staggering price-to-earnings ratio of 481 times.
As for DAL stock, it has dropped 5% since the outage and 14% in the past three months. This situation has major implications for both companies and their investors, as it highlights the importance of cybersecurity and the potential financial risks associated with tech failures.
In conclusion, this incident serves as a cautionary tale for investors to carefully assess the cybersecurity risks of the companies they invest in and to be prepared for potential financial losses in case of tech failures. It also underscores the importance of having a solid risk management strategy in place to mitigate such risks and protect one’s investments.