Potential Gains for SentinelOne, Palo Alto Networks, and Microsoft After CrowdStrike Outage
A problematic update from CrowdStrike (CRWD) led to what Deutsche Bank termed “the widest IT outage in modern history.” Analysts suggest this could create opportunities for its competitors in the cybersecurity market as customers may start exploring alternative solutions.
SentinelOne and Palo Alto Networks
Wedbush analysts highlighted that SentinelOne (S) and Palo Alto Networks (PANW) might emerge as beneficiaries from the CrowdStrike incident. There are signs that some CrowdStrike clients are considering switching to other providers.
Microsoft
Deutsche Bank analysts pointed out that Microsoft (MSFT), affected by the outage due to its Windows operating systems, might also see an upside. Microsoft’s extensive cybersecurity offerings position it as a viable alternative for affected customers.
Transition Challenges
Despite the potential shifts, analysts cautioned that switching security vendors is a lengthy process. Thus, it is unlikely that competitors will experience immediate gains from the incident.
Backup and Recovery Solutions Providers Could See an Upsurge
During the outage chaos, CrowdStrike alerted its customers about threat actors impersonating employees, a situation that could drive demand for phishing security solutions. Wedbush analysts noted that companies specializing in email and phishing security might receive a minor boost from this event. Additionally, backup and recovery solution providers, such as Microsoft-supported Rubrik (RBRK), could see increased interest.
Market Reactions
Since the global tech outage last Friday, CrowdStrike shares have dropped over 25%. In contrast, SentinelOne shares have risen by approximately 15%, Palo Alto Networks shares have dipped by 1%, and Microsoft shares have declined by 5%.
