How Is Microsoft Looking after CrowdStrike Failure?
Microsoft (MSFT) is looking to release its quarterly earnings report on Tuesday, after the closing bell. The company recently endured a very public failure with a new CrowdStrike update to Office 365.
That update caused the Microsoft suite of services to crash into a blue screen of death. The error created a booting loop that would not allow systems to come back online. Microsoft has since released a free fix that users can download, but the damage was incredible, affecting 8.5 million devices worldwide.
Microsoft stock is currently down 1.90% to $418, a decrease from where the stock was earlier this month at $457. The company’s stock has still done remarkably well this year, though, climbing by nearly 13% since January.
For its fourth fiscal quarter, Microsoft is expected to report just over $64 billion in revenue, with earnings per share of $2.94. Last year, the company reported $56 billion in revenue for this same period, with earnings per share of $2.69. If the estimates pan out, then Microsoft should be able to save face with investors for at least a while.
Expect Repercussions to Come
While there is now a space of more than a week between today and when the CrowdStrike failure occurred, many businesses are still picking up the pieces and dealing with the problems that were created. Microsoft and CrowdStrike have both been sued for damages by some of the affected businesses, and more may follow suit soon.
We anticipate more trouble for Microsoft in the future, stemming from this issue. While a fix has been released, companies that were hurt by the problem will want compensation for their loss of revenue. Microsoft could be paying out money to injured parties for years to come, and the result could hurt the company’s stock as well.
Microsoft did act quickly to get a free fix out there for customers, and they are focused on expanding their AI systems to bring in more revenue. But the CrowdStrike issue will likely persist for weeks in the public consciousness, and Microsoft will continue to have to do extensive damage control to save face.
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
SaveAdd 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals