Trade School: What to do with CrowdStrike

Josh Brown breaks down what to do with a stock like CrowdStrike after its massive global IT outage. For access to live and exclusive video from CNBC subscribe to CNBC PRO: cnb.cx/42d859g
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[@wilhelmina-o1c]

The biggest lesson I learned in 2023 about the stock market is that nobody knows what will happen next, so practice some humility and low a strategy with a long-term edge.

[@rossie-m2t]

Nobody knows anything; You need to create your process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.

[@wilhelmina-o1c]

@mario-n8t Could you kindly elaborate on the advisor's background and qualifications?

[@wilhelmina-o1c]

@mario-n8t I just ran an online search on her name and came across her website; pretty well educated. thank you for sharing.

[@moneekdilawari4508]

When a trade goes wrong, it becomes an investment

[@willberry6434]

exactly lmao

[@Bigpicturefinance]

Until it becomes a bankruptcy story

[@jlam3927]

Speculation - When DEI policies cause you to hire inexperienced programmers because of the color of their skin?

[@DaniEles-rc7ij]

@@jlam3927 Most of the best programers are brown Indians... so there is that.. Diversity in tech mean hiring WHITE PEOPLE

[@nick0780]

So true. I'm still holding Boeing after 5 years?😂

[@sidinhasol]

Exploring crypto trading has proven to be a superior choice compared to stocks. With the potential for higher returns, 24/7 market access, and innovative opportunities, crypto trading offers an exciting and dynamic investment landscape. A special thanks to Shea Ardolf for her invaluable guidance and support in navigating this thrilling market!

[@sidinhasol]

She has a noticeable profile on the internet, you can simply research her.

[@lucaspaciello866]

Trading has offered many opportunities to investors to build a high portfolio despite the economic downturn

[@dorothyweller7736]

When it comes to investing, we want our money to grow at the maximum potential rate of return while posing the least amount of danger. While there are no shortcuts to wealth, there are wise methods to get it.

[@chesteradams9764]

Investments should be the best thing anybody can do for themselves, till today my profits in stocks continue to impact my wealth greatly therefore I don't feel any urge to soley depend on my salary.

[@normandholland8374]

Investing is how you create Wealth, I started investing from pandemic crash

[@garybarrett4881]

I wouldn’t touch this until the legal ramifications are dealt with

[@24theMoney]

Not with a 1000ft pole

[@deangulberry1876]

By then the stock will have recovered

[@jlam3927]

@@deangulberry1876 Doubt it. As an ex IT guy, there is no way I would continue on with a company that NUKED me like this. IT had to physically visit every machine affected, or find someone to help them. It's as bad as it gets other than having to rebuild the actual machines.

[@JoyceMuller-xv6kh]

This global internet outage is insane! All airlines grounded and i was stock the airport and even banks, media, and offices from the U.S. to Australia. How can CrowdStrike have such a monopoly that could help restore such a massive amount of tech?

[@MattMiller211]

It's pretty concerning. If they can fix this, what other control do they have over our infrastructure? or are we truly in the matrix?

[@AlexYoung-21]

Right? It makes you think about the stability of our systems. But hey, I barely spend time online. When I checked my portfolio with Desiree Ruth Hoffman, we were still in the greens. That’s been the case for 16 months straight!

[@TerriMelzer]

Wow, really? I've seen the name Desiree Ruth Hoffman before but can't figure out where.

[@MattMiller211]

Probably from her forecast on Nvidia before the pump. But how are you in the greens with all the fluctuations due to the election and everything else? Can you share her strategy?

[@AlexYoung-21]

Honestly, just schedule a call with her. She has vast knowledge in finance and really knows how to navigate these times. I handed over my portfolio to her so I can focus on my family. These days, things just get scarier and scarier.

[@anujanshankaran8577]

right now it has a 511 multiple. Would never buy it

[@Flexipop76]

I’m glad I got out with my position at 300. Setbacks for a company is one thing - this is on a whole other level.

[@buttrflyns]

Honestly, this situation makes me uneasy, especially with the potential depression, not just a recession. I'm not sure about my $130K investment strategy given the economic uncertainty.

[@MyCatAnd]

If you're not familiar with market investing tactics, you should get advice from a financial counselor.

[@GraceKauffman]

I agree! That's why I work with one. My $520K portfolio is well-prepared for all market conditions, having grown 85% since early last year. My advisor and I are planning for this year too. In my opinion, financial advisors are among the most important professionals, just like doctors.

[@centollero]

@@GraceKauffman I think could really use the expertise of an advisor like that.

[@GraceKauffman]

Her name is BONITA JEANETTE RODRIGUEZ. Just look her up

[@centollero]

Thanks for sharing. I searched for her name and found her website. I reviewed her credentials and did my research before contacting her. Thanks again.

[@shadowmil]

Crowdstrike is going to get sued into oblivion. This was gross negligence and their ToS isn't going to protect them liabilities.

[@dsicario]

Sold! Been in tech over 30 years. This was crazy bad

[@jlam3927]

Those sleep deprived IT people that had to touch every workstation in the last week or two are going to be seriously seriously mad. They are currently looking for another vendor I can guarantee it.

[@C-H1]

Possibly buy a protective put?

[@williamchurch711]

I'm out until I hear more about the legal ramifications of these outages. Also, I'm sure Microsoft will be looking to restrict third-parties from accessing the Kernel level of their operating system. I'm not sure how that affects CrowdStrike business.

[@johnsmith-vy7vo]

A European Commission's antitrust ruling against Microsoft, issued in 2004, mandates that Microsoft provide third-party software developers with access to the Windows operating system's kernel - undoing this legal requirement will not be a trivial matter. And even then, BSOD incidents are still just as likely to be caused by MS software products - they are not immune from BSOD episodes. In fact, Windows updates have also caused (less catastrophic) BSOD events on occasion. So long as the Windows kernel design remains in its current form, the potential for these types of OS failure will persist - irrespective of who is producing software components for the Windows platform.

[@williamchurch711]

@@johnsmith-vy7vo Thank you for your insight. Yeah I believe this will be the catalyst for Microsoft to challenge that ruling. Partially because there would be an economic benefit, in addition to preventing the reputational cost of events like this. I'm sure Microsoft would rather be in control of their own destiny. Furthermore, I'm concerned about the economic ramifications associated with CrowdStrikes insurance going forward (insurability, payout, etc). Not to mention the legal fees I previously mentioned.

[@tringuyen7519]

@@johnsmith-vy7voEU politicians demanding that apps have kernel access to any operating system is insane! Any engineer will tell you that it’s dangerous & unnecessary!

[@williamchurch711]

@@tringuyen7519 I want 100% agree, however their argument would be blocking kernel level access materially affects security providers business and is non-competitive in nature.

[@jlam3927]

Legal ramifications will be huge. Delta is still suffering to this day and they have lost millions.

[@thetradersam6157]

Lawsuits will be coming, and competition is tapping their heals and Microsoft is probably evaluating doing their own thing, I will watch this one from a safe distance..

[@og.fishgang9201]

Yeah they’re trying to get ppl to buy off of a somewhat Green Day? The big wigs are done with crowdstrike and are shorting the company, selling puts,etc. to gain back their losses. It’s savage but when you do what crowdstrike has done then ppl react emotionally with spite. Along with the fact others think they have competition. Right now I have put option in strike price $235 , for this tank even further 😂

[@24theMoney]

You can say you are only liable for X, but that doesn't mean you can't be sued for 100X.

[@Dumbled0resArmy]

If you were a client wouldn't you look to cancel your renewal and move to competitors?

[@lars3283]

Do you switch to a different car company ever time there is a recall? Do you switch ISP providers every time your internet goes out? Do you a new computer every time your computer crashes? Of course not, these things happen to every company. It's not the end of the world.

[@szymsky3000]

considering the competition on the market, the fact how big is crowdstrike, the reason behind the outage (silly mistake by provider itself, not a breach or hack attack), and the fact that switching to other providers generates additional costs - NOPE i wouldnt

[@cianog]

Yes you do

[@jujulu8040]

We already moved to a competitor. Get a better deal and offer.

[@Dumbled0resArmy]

@@lars3283 If not of their own volition it's highly likely competitors will seek to poach crwd clients. Using your own analogy, if someone approached me after my internet went out saying, as a provider our internet service hasn't gone out, and this is why, then I would move providers.

[@jlam3927]

Do they have a DEI hiring policy? Is the "fabric of their workplace" rich?

[@markheavey9689]

Expensive stock.

[@khoichau8316]

Dead cat bounce

[@PolarisPointsNorth72]

Good luck with crowdstrike getting new customers. Not gonna bounce back to it's previous levels.

[@photovideooz4084]

Crowdstrike still have PE above 500

[@tonioyendis4464]

CrowdStink is in the lions-den wearing pork-chop draws!

[@QuanLe-lx7iw]

US: Try to protect the country by using crowdstrike Outage occurred by Crowdstrike self destruction China and Russia:😂 US: 😢 We are being laughed at!!

[@pyajudeme9245]

Maybe it is better to decide after reviewing their source code. It seems to be pretty crappy.

[@Capt_M]

I work for a F500 company and we’re dumping CRWD unless we get a hell of a deal. Friend who works for another F500 company is in talks to do the same. A lot of people eyes are opening to the risk of CRWD.

[@kraz007]

Been waiting for Josh

[@larrybrewer]

It appears that Crowdstrike has a lot of FBI connections. Expect another outage in November.

[@GreatSharkHunt1997-nt9pw]

Somebody cue the X-Files music...

[@jlam3927]

Expect a lot of votes flipped.

[@mnashish1]

Don't touch it till liabilities become clearer.

[@rhuwyn]

To anyone wondering what to do about Crowdstrike. Look at what happened with Solarwinds. Make your own decision.

[@CimandeTube]

Wait for lawsuits. Don't go near this until that's all over

[@GreatSharkHunt1997-nt9pw]

The lawsuits will be never-ending, CRWD will become just another MMM or JNJ. Stay away from lawsuit stocks, always disappointment.

[@TheeRomantic]

Crowdstrike about to gain major gains long-term. I'm holding

[@Crewcop]

Video cuts outs half way thru Josh saying something .

[@michaelnorush3524]

Hey Josh, you’re no better a stock picker than my grandmother.

[@GGGrapefruit]

Holy cow, this was super interesting to watch

[@ztron-rv9ze]

SVB did it bounce back

[@Bigpicturefinance]

Josh you forgot to mention the mountain of multi billion dollar lawsuits Crowdstrike is facing for it's failures. This usually bankrupts a company

[@silentgreen0058]

After he talks it up…he’s out

[@mehadiuddin2378]

Laughable analysis… it’s heading to 100

[@keto6789]

So you buy a little at a time on the way down and have patience.

[@The_Turd_Ferguson]

id argue 30.

[@ronchon5246]

I got out shorting at 264. Wish I’d stayed. Thought don’t be too greedy as I was leveraged. 114k up. Didn’t listen to the old timers sayings. Where there’s fear get greedy

[@Midnight-City]

Dead cat bounce. CRWD still headed lower. $200-$240

[@ztron-rv9ze]

In a capitalistic system the complexity of who to blame is difficult

[@lekang8179]

There would be hundreds millions compensation from CRWD, don't catch this falling knife.

[@YamaReal]

I bought on dip, no better alternative, can’t be held liable monetarily

[@skibbydweez2647]

WAIT TILL THE LAWSUITS START ROLLING IN!! $130-150

[@clifftanch]

I appreciate Josh’s forthrightness and effort to be transparent before viewers, but I think this is unwise advice, particularly if you are an investor. Let’s see where we are in one week.

[@titusp9488]

Think about the potential legal issues Crowdstrike is going to face and business losses 😂😂😂

[@ajubhosle]

The main question is on litigation

[@NOSOUND921]

This aged well

[@diegog1291]

How many companies can do what they do?

[@ThelonelyFrost]

Many

[@billw7287]

@@ThelonelyFrostfew

[@ronchon5246]

Yeah and it’s now 254. He knows nothing with an election 4 months away.

[@anujanshankaran8577]

I would go for NVDA anytime

[@knt3219]

No. This Is A Trade And It Is Also An Investment. $275 Is A Nice Entry Point To Take Position This Stock . That Is A Honest Question In-Which You , As An Investor Must Ask Yourself : If Big Guys Want To Play This One , Should You Joint The Party. This Stock Is Where They At Given What Has Occurred Last Friday. Good Luck To All Investors As The Market About To Pick Up Its Speed And That Is My Prediction As We Move Into August 2024. Sincerely❤❤❤, KNT.

[@realnapster1522]

Crowdstrike got exposed. Big businesses will now diversify and competitors will get small chunks from their market. It’s a lose lose situation. Lawsuits and negative publicity for months coming.

[@sajjadkazi1806]

lol, i disagree

[@rahulrastogi6916]

where is scott wapner ?

[@GreatSharkHunt1997-nt9pw]

Hamptons?

[@smokosish]

what's the story

[@AnkurVarsheny]

Usually I like what Josh says, but not on this one. 20x sales is not cheap by any standard what so ever. Plus the company finds it self in crossroads of 100's of lawsuits right now, no point adding or holding till it stabilizes.

[@ClaudeReville-w1x]

Grady Street

[@PeterScarpa-ng3gf]

CRWD ❤❤❤❤❤

[@q9r8s7t6u5v4w3x2y1z0]

CounterStrike is a buy here

[@sokoking5847]

PUTS PUTS PUTS

[@unkown34x33]

it's like a toxic relationship a lot of things are going wrong but you guys are still going to try to fix it.... seriously United States can't you use something else?! any other server that has competent people!

[@JMEUTEUW]

Isn't josh the guy who said 2 weeks ago get out of cash?? 😂😂

[@skolvikings354]

Crowd will hit 400+ in due time. They have to be great and perfect for now forward.

[@robcrawford1799]

Did he ever get around to talking about what he thought someone should do? A full 90 secs and still just blah,blah,blah. Full disclosure I sold weeks ago, when it first started acting weak.

[@nothimbutbetteractually]

That's like going back to an ex who swears they will change 😂. Stick to the cybersecurity indexes if you want a real investment.

[@GreatSharkHunt1997-nt9pw]

The problem with those ETFs is that they are heavily weighted w/ PANW and CRWD, neither of which are doing too well these days. I'm becoming more convinced that cybersecurity software, and the entire enterprise software space as a whole, is a total fraud. Bloated valuations for companies losing gobs of money, it's no wonder these stocks have been having a reckoning the past few months.

[@khafrekhufu7259]

BUY...BUY...BUY...BUY

[@GaskellEunice-m5y]

Johnson Lights

[@andreaqui1653]

0 dividends....im cool on crowdstrike

[@MartinDizon-c2f]

Kelton Hills

[@ecuador9911]

CrowdStrike made a mistake. A BIG mistake. There will be a price to pay. But they play a crucial role in cybersecurity. Who will replace them in the function they perform in cybersecurity? Hold or buy more.

[@ecuador9911]

@TeeHee-vo1bn good point. Look at the rise and fall of Netscape to Microsoft Internet Explorer as an example.

[@brank999]

GAAP VS NON-GAAP... DOESN'T MATTER. HA HA HA

[@The_Turd_Ferguson]

stock is done. for good. forever. between the lawsuits and the amount of business they are going to lose in the future to competitors, there is ZERO growth and only shrinkage on every metric for this company. If it doesnt go BK it trades as a fraction of the price. short at will.

[@BerkeleyBerton-v8f]

Celia Mountains

[@24theMoney]

20X P/S, 500X P/E ....yeah ok buddy.

[@DelorseHorner-f3o]

Dane Neck

[@jasonhutchinson8060]

This recommendation would have lost you another 10% in 72 hours and you still have no idea what their liability or legal issues are or might be. This is uninvestable at present. Do better Josh.

[@MarkIm-o7g]

Fay Canyon

[@juanpuebloknowyumama3831]

Crowdstrike stock is down!!! Too many lawsuit caming don't forget about that.intitution Shorting under 200$ piece why? They know something !!! Move on crwd stock is finished 😢sell now later u will regret it

[@GibbonMegan-x3f]

Hessel Rest

[@skolvikings354]

Buy crowd buy Nvda buy Amazon buy apple buy google

[@salimyilmaz9659]

I finally bought this opportunity. Held support

[@RichardMauri]

criminal enterprise computing lesson after largest class action lawsuit in history happens buying this effing company's stock not recommended lol glad i got out at its peak

[@ztron-rv9ze]

Silicon valley bank

[@WattRosemary-i1t]

Martin Jennifer Hall Edward Thompson Richard

[@NotifySummit]

Thompson Brenda Miller Robert Moore Linda

[@WilliamLam-r2e]

Little View

[@noraesefitzgerald6741]

Johnson Eric Jones Joseph Davis Daniel

[@LilyHeloise-c6f]

Young Jose White Frank Anderson Brenda

[@johnyvik7242]

And in the meantime this piece of garbage is either selling or shorting. 😮 oldest trick in the book😊🎉

[@Bradgilliswhammyman]

crowdstrike is fine, this will be forgotten in a couple months. Keep buying.

[@cianog]

Lol

[@ThelonelyFrost]

Wait until you see how many credits they have to issue as a part of breaching the SLA

[@mybuttsmellslikebutterbut207]

@@ThelonelyFrostbro forget about SLAs. Think of the lawsuits.

[@tringuyen7519]

If CS publicly promises the world that this problem will never happen again & explains exactly how it will achieve that, then buy it. Until then, avoid it.

[@tobyhoyle]

take it easy Bozo

[@JohnnyRico8]

Dump it forever. The brand is dead