From Nasdaq: 2024-07-26 13:34:00

..this is to go quiet. You can’t go dark. One of the things we’ve seen from the press release activity from CrowdStrike is that they went a little bit quiet and I understand why, because this is a massive failure. This is a serious platform issue and it’s not something that you want to rattle around in public for very long, but you have to get in front of it right away. There are some things that CrowdStrike could have done better in this situation, but overall, the fact that they got channels and they got help to customers, and the fact that they’re trying to fix the issue as we go through temperature get the file out of the system is important. But the communication, I think, was lacking. I would say that the other way that CrowdStrike could probably handle this a little bit better is to have that communication flow a little bit more ready on Twitter. I don’t check their Twitter feed often, so I don’t know what happened here, but this is the kind of situation that would trigger any reputable company to have their Twitter feed blow up with “we know what’s going on, we’re working on it, here’s how to fix the issue.” I don’t think they did that as much as they could.

Dylan Lewis: You look at the financial side of things. The stock did take a hit as a consequence of this. Given that the stock is down and it is a pretty massive sell-off relatively speaking for CrowdStrike, how are you feeling as a potential shareholder or someone thinking about picking up shares now that the stock has dipped?

Tim Beyers: I know a lot of people in a situation like this are looking for buy-on-the-dip opportunities and I understand why, but I think there are some things that have to be seen regarding CrowdStrike before I’m going to feel comfortable in recommending people to pick up shares. With any company that has had this type of issue, there has to be a period of penance. There has to be a period where the company demonstrates that they’re going to get better from this. Now, this is not to say that CrowdStrike won’t get better. It’s possible that this was a one-off situation, but one of the things that I’d want to see, Dylan, is first, what happened in the postmortem of this? What did we learn? This is a really crucial element of disaster recovery and making sure that we get better. Are we going to do better than this in the future? But second, I think investors have to look at this and say for a company that sells trust, we need to know what are the exposure levels? How do you fix the issue? And what is the company going to do to mitigate the possibility of this ever happening again? I don’t think we really have seen that from CrowdStrike yet. Given that, it’s a tough sale for me right now. I’m not fully confident that buying into the stock is a great idea, even though it is down more than 10%.

Dylan Lewis: Certainly, a situation that offers a lot of areas for reflection, I think, for crowds for and for shareholders. Tim, thanks for diving into this one.

Tim Beyers: My pleasure, Dylan.

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