Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Monday

Analysts predict that the recent global tech outage caused by cybersecurity firm CrowdStrike could cost over $1 billion, but the question of who will foot the bill remains unanswered.

What Happened: Experts predict that there will be demands for remuneration and possibly lawsuits, CNN reported on Monday.

“If you’re a lawyer for CrowdStrike, you’re probably not going to enjoy the rest of your summer,” said Dan Ives, a tech analyst for Wedbush Securities.

On Friday, CrowdStrike was identified as the source of a massive global tech outage, which led to the cancellation of over 5,000 commercial airline flights worldwide and caused disruptions in various sectors, from retail to healthcare. The issue was traced back to a few bits of faulty code in a software content update by CrowdStrike.

The company acknowledged the issue in a social media post late Sunday, stating that a “significant number” of the approximately 8.5 million affected devices were back online. However, CrowdStrike has not addressed whether it plans to provide compensation to affected customers.

See Also: Analyst Predicts Bitcoin To Soar By 83%, But There’s One Major Catch: ‘We’re Going To Get That Continuation As Long As ...’

Despite the uncertainty, some experts believe that CrowdStrike’s customer contracts may shield it from liability.

“I would guess that the contracts protect them,” said James Lewis, a researcher at the Center for Strategic and International Studies.

While the final cost of the outage is yet to be determined, the damage to CrowdStrike’s reputation could be significant, potentially making it difficult for the company to attract new customers.

Why It Matters: The outage, triggered by a faulty update from CrowdStrike, impacted millions of Windows users, causing widespread disruptions to various services worldwide. The incident, which was not a result of a hacker attack, was due to a technical error in the software update.

Following the incident, Jen Easterly, director of the Cybersecurity and Infrastructure Security Agency, criticized CrowdStrike’s faulty software update as a "serious mistake" with significant impacts on critical infrastructure operations across the world.

Price Action: On Monday’s pre-market, CrowdStrike shares were down 3.54% at $294.15 while Microsoft Corporation shares were up 0.7% at $440.15., at the time of writing, according to Benzinga Pro.

Read Next:

• MedMen Property Sell-Off Under Receivership, State by State

Photo courtesy: Wikimedia

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Taiwan Semiconductor Manufacturing Co stock opened lower Monday premarket as U.S. President Joe Biden withdrew from the 2024 Presidential race.

On Sunday, Biden, 81, revealed his decision through a letter on social media platform X after a lackluster debate performance and increasing pressure from fellow Democrats to step aside.

The broader artificial intelligence chip sector led by Taiwan Semiconductor, Nvidia Corp , and Advanced Micro Devices, Inc noted a selloff last week after former President Donald Trump suggested that Taiwan should compensate the U.S. for its defense, highlighting the lack of a formal defense treaty.