After suffering a slight 3.03% drawback caused by the rotation from the tech sector, Microsoft (NASDAQ: MSFT) stock hit another road bump in the latest trading session. Losses of 0.71% caused MSFT shares to end trading at a valuation of $440.37.
And with a massive IT outage that brought multiple industries to a standstill worldwide on July 19, the trouble seems never-ending, as losses of 1.27% for Microsoft stock extended in pre-market trading.
How did the outage occur on Microsoft-based software?
The financial consequences have yet to be assessed, and multiple delays are bound to negatively impact revenue.
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According to the cybersecurity expert Dr. Shaanan Cohney:
“It’s a computer security vendor that offers a monitoring service to large enterprises. This service allows them to detect suspicious activity or potential security threats on their computers and take necessary actions, such as issuing alerts or locking down the system.”
Cohney continues, “However, due to its highly privileged access, any programming errors can have severe consequences, potentially damaging the entire computer system. A single mistake can cause the whole system to crash.”
Why is MSFT stock affected?
In what was called “the largest IT outage in history” by a prominent security consultant Troy Hunt, Microsoft Windows system was affected by a faulty update from CrowdStrike (NASDAQ: CRWD).
This update caused a global outage that has disrupted businesses worldwide, affecting banks, airlines, train companies, and supermarkets.
Major U.S. airlines like American Airlines (NASDAQ: AAL), Delta Airlines (NYSE: DAL), and United Airlines (NASDAQ: UAL) have been grounded, while airports in Germany, Amsterdam, and Spain are also facing issues.
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