Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hi team, I have been waiting to open a position in CROWD. I am unsure of the liability for CROWD in their recent mishap. Are they insured for such an event & can those affected have a valid claim against the company? Thanks & regards, Sidney
Hi Sidney,
Crowdstrike’s stock has fallen over 40% since the cybersecurity company brought the world to its knees. The company has already been hit by a class action lawsuit from shareholders over the massive outage while Delta Airlines are already talking about US500mn in losses from grounded flights. CRWD has a market cap of $US54bn but its going to probably need some of it to cushion the legal ramifications of the recent issues with insurance and reinsurance costs going forward to come into play over the coming year (s):
Even if we assume that CRWD is adequately covered by insurance, the issue is a loss of future earnings given there are other alternatives in the market. We think this is a huge issue that insurance cover will not encapsulate – it’s all too hard for MM.
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