Will CrowdStrike’s Monumental Misstep Hurt Microsoft Stock?
From Nasdaq: 2024-07-25 07:30:00
A CrowdStrike software update caused an outage that only affected Microsoft software, not Linux or Mac OS. Despite a history of quality issues and security problems, Windows still makes up a significant portion of Microsoft’s revenue, with $16 billion from personal computing in Q3 2024, growing 11% year-over-year.
The outage impacted over 8.5 million Microsoft devices but less than 1% of all Windows machines. Microsoft stock has remained stable, up nearly 20% in 2024, supported by strong performance in the cloud and AI sectors. Operating income grew 20% compared to the previous year, reassuring investors of Microsoft’s resilience.
CrowdStrike has taken responsibility for the outage, meaning Microsoft is less likely to face long-term repercussions. The focus remains on Microsoft’s cloud and AI applications, which have been driving the company’s revenue growth. Despite Windows’ importance, the stock’s performance largely hinges on these key sectors.
Investors may not be significantly impacted by the outage when it comes to Microsoft stock. The Motley Fool Stock Advisor team highlighted Microsoft as a strong investment, but not one of their top 10 picks. S&P 500 returns have been quadrupled under the Stock Advisor service since 2002, emphasizing the continued potential for success.
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