Last Friday, a software update from cybersecurity company CrowdStrike triggered a shocking IT incident worldwide - as many as 8.5 million Windows computers worldwide experienced blue screen crashes. Meanwhile, this directly led to a significant drop in CrowdStrike's stock price for two consecutive days.
In this storm, known as the "biggest IT accident in history," there have also been some comical market "incidents".
**Deutsche Bank analyst Brad Zelnick was unable to release his commentary on the global outage last Friday due to computer failure.
What makes people feel that not publishing research reports is better than sending them is that Zelnick actually believes that there is a buying opportunity for CrowdStrike after last Friday's sharp decline, and in the end, people undoubtedly know that CrowdStrike experienced a second consecutive day of sharp decline on Monday this week**
Zelnick honestly stated that he believed CrowdStrike had created an attractive price point after a significant drop last Friday. But he was unable to share his views with the client at that time. His company (Deutsche Bank) is one of the many companies affected by this malfunction.
Zelnick wrote in a statement released on Monday, "Our first reaction last Friday was to view a 10% or more pullback in a high-quality stock as a buying opportunity. However, due to the outage itself, we were unable to release our initial research report
Zelnick ultimately maintained a 'hold' rating on CrowdStrike with a target price of $350. On Monday, CrowdStrike's stock price closed at around $264, after a sharp drop of 11.1% on Friday and 13.5% on Monday.
However, Zelnick still wrote on Monday, "The bottom line is that we still have confidence in the company and believe this is a decisive moment for the company. In our view, the risk lies in how the company will respond - how it will react to the actions of its competitors, who will surely seek to take advantage of this opportunity
In fact, Zelnick was not the only one who had the intention of "buying the bottom" of CrowdStrike last Friday. But facing the sharp drop in CrowdStrike's stock price for the second consecutive day on Monday this week, many bulls who took action last Friday may now wish that their computers had also encountered a "blue screen" like Deutsche Bank's machines at that time.
Wall Street's "female stock god" Mu Jie is obviously the representative who rushed in last Friday and "copied the bottom halfway up the mountain". It is reported that two funds under Mu Mu Jie bought nearly $12 million (about 38000 shares) of CrowdStrike stocks last Friday.
According to the latest information released in the morning, the "persistent" Mu Mu Jie bought about 20000 shares of CrowdStrike on Monday.
In the industry, Mu Mu Jie was known for seizing opportunities to buy when her favorite stocks fell. Although this approach often involves "divine manipulation" when everything goes smoothly, once the timing is not chosen correctly, it is also easy to be deeply trapped.
According to S3 Partners' data, in the past two days, those who have made a lot of money due to the global "blue screen event" are obviously the bears of CrowdStrike.
Data shows that despite a consecutive 23% decline for two days, short sellers have accumulated a book profit of $978 million for this cybersecurity software company. This sell-off is enough to make CrowdStrike's bears profitable so far this year and push their book profit for July to nearly $1.5 billion.
According to S3 data, the total short positions in the system software industry have increased by nearly $12 billion so far this year. Since the beginning of this year, CrowdStrike's short selling scale has ranked second in the industry, only behind Microsoft.