I SOLD Lots of CrowdStrike Weeks Ago | Here's What I Think After the Stock Has PLUNGED | $CRWD

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👨‍💼Brian Stoffel is a writer, investor, YouTuber, and financial educator. He's a teacher at heart. Brian has been investing for over a decade and has written over 4,000 articles for The Motley Fool. Brian plans his life and his investments around “antifragile” principles.

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[andrewnichols]

Watched your previous Crowdstrike videos and first thing I thought of this morning is how you mentioned 1 single breach could tarnish their image. Well, not a breach, but it took down my work computer, my wife’s company’s entire network, and looking at the news, just about the entire world. I’d like to add right now but I am concerned about legal trouble and the tarnish on the brand. I will see how it plays out before deciding. Great job analyzing the company and its risks and trimming when valuation was too high. They could have just as easily not had an issue and kept trucking, but you’re looking pretty smart right now.

[EarthwithTom]

Too be honest the 10% fall doesn’t seem to be enough given the magnitude of the incident and the brand damage it has caused

[tachiiderp]

man i remember seeing comments of people bashing you for trimming in those previous 2 videos, now youre being praised lol channel ready to blow up

[russc.]

I already had a 3% position in CRWD and I bought a little more today at $295. My DCA is $202. I believe in the company long term and I believe that this is just a blip on its long term growth.

[vasantk]

Crowdstrike failed all the investors and customers big time today. It seems like company that has its solutions used by most fortune 500 companies doesn't understand its own importance and responsibility.

It shows how broken their internal QA processes are to not catch a disaster that caused BSOD on all machines on the first morning of deployment. We are not talking about a rare bug or crash. But an incident that brought so much of the world to standstill. And the communication from the management afterwards is one that of not owning the responsibility or accountability. Sold all the shares. Not coming back until they prove to be a reliable business to own.

[RoTelnCheese]

You’re trying your best to contain that smile but I can see it quite clearly 😅

[loganlasvegas]

Great call Brian. Longtime shareholder and fan of CRWD, but they got too arrogant and careless. I recall Kurtz was kind of an ass irt PANW’s replatforming strategy few months ago, ridiculing them that PANW had to give away products. "free is not free" and "good enough is not enough" he said. Kind of took a victory lap on PANW’s bad ER and stock drop. Now he’s on the hot seat and eating crow. What comes around goes around.

[timclark]

excellent update video....thanks! I traded it this morning; bought at 294 sold at and days work....:)

[PeterFippinger]

Both customers and Mr. Market have very short memories for such events, especially since this was not a failure of the technology. In addition, management is out in front admitting human error and defending the technology. At this valuation, its a buy with a long-term mindset. Even if revenue and margins take a temporary hit, there is a very long runway for this company - without real competition for this full range of services.

[Scrappy_ill_fold_ya_Doo]

So is it a good idea to buy PUTS options for now until everything clears up?

[Nick-ynuz]

Do you offer a copy of that spreadsheet???

[scottwingerter]

This will not be good for CRWD. Reputation has been tarnished and will cost a considerable amount to keep customers moving forward. Monday I'm betting many people will be getting out while the getting is good.

[Capt.daveGe]

I'm not touching this....they would of been better off if itnwas an attack and not their own gross negligence....tge hospital where my wife works shut down...patients were needing g blood and nobody could access it, no meds, even the supply room locked out because everything is scanned and all doors have scanner keys....it was insane. People didn't make lawsuits once this is all sorted out.

[saschakonto]

The big question for me: who will be held accountable for the gigantic financial impact? Hospitals, airports, supermarkets, restaurants … down. I heard about service level agreements, that promise 99, 99% availability. One more point: did you hear the CEOs response? No apologies. Looked to me as if he only repeated the lawyers text.

[goldguilder]

You have to factor in the many class action lawsuits that will follow

[victorhinvesting]

I started a short position on CRWD two weeks ago. Good company with a good business. Stock price is much too high. Bigger software companies will take this space over at some point and put pressure on this smaller company.

[darrenprior]

How many actual cyber breaches has CRWD failed to stop over the past decade? This is a glitch, mostly due to MSFT's archaic and rather dreadful OS. Sure there have been some inconveniences here (some very serious for sure. Even possible deaths) but to me all this says is just how much customers have come to rely on CRWD for safety and security. Will this be remembered in a year's time? I doubt it. Humans are fickle and love a good headline. Drop back in a year and tell me I'm wrong. Long CRWD. Also long APPL who are looking pretty good today

[nickjerrat]

Love the fast video reaction. My sentinel one stock is going up (today).

[wesseldieben]

As a programmer I find it frankly unacceptable that a big firm like Crowdstrike has such little control on possible code mistakes before pushing it to production. Normally, there are couple of layers of automatic controls to see if all code is clean. Therefore I think this is an organizational problem, I think this is going to get a lot worse for Crowdstrike.

[kennykwong]

The problem won't be this quarter, it will be the medium term growth outlook as new logos and module expansion will fade out rapidly. No customer will invite Crowdstrike to tender for cybersecurity contracts for the foreseeable future, as they will be known as the company which caused the greatest IT outage in history. They will need to offer compensation to existing customers, who may not even renew once contract ends, customer attrition will inevitably increase. There is strong competition in the cybersecurity sector, even the endpoint market which Crowdstrike dominates. SolarWinds is an example of what will happen.