Shares in Microsoft and Crowdstrike are down premarket following a widespread IT outage that has grounded flights, caused banking chaos and even taken TV outlets off the air.
Microsoft stock fell 2.6%, which doesn't seem much until you realise that is $84 billion off its valuation. Crowdstrike fell 17%.
While the cause remains unclear, Microsoft has stated it is taking "mitigation action" to address the "lingering impact" of the outage. Australia’s Home Affairs ministry and American Airlines have suggested the issue is linked to global cybersecurity firm Crowdstrike.
Reports are indicating that a software update from Crowdstrike may have caused Windows devices to crash.
Crowdstrike, a cybersecurity company founded 13 years ago and listed on the US stock exchange, typically deals with the aftermath of cyberattacks. However, this incident reportedly involves a problematic software update affecting nearly 24,000 of its customers worldwide.
The outage was first reported in Australia, impacting stores like Woolworths and financial institutions such as the National Australia Bank. It then spread to the US, where airlines including United, Delta, and American Airlines grounded flights. European airports have also reported delays, with disruptions at London’s Stansted and Gatwick and Amsterdam’s Schiphol.
Broadcasters, including Sky News in the UK, have been affected, and the London Stock Exchange reported issues with its news service. Poland’s largest container terminal in Gdansk has experienced operational disruptions.