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Key Takeaways
- After a defective CrowdStrike update caused a global tech outage, analysts said some of its rivals in the cybersecurity space could get a boost.
- SentinelOne, Palo Alto Networks, and Microsoft’s cybersecurity business could all stand to gain as CrowdStrike customers may consider alternatives, analysts said.
- Phishing security companies as well as backup and recovery solution providers could also benefit from the aftermath of the outage.
After a defective CrowdStrike (CRWD)Â update caused what Deutsche Bank called “the widest IT outage in modern history,” analysts said some of its competitors in the cybersecurity space could be positioned to benefit from customers considering alternatives.
How SentinelOne, Palo Alto Networks, and Microsoft Could Gain
SentinelOne (S) and Palo Alto Networks (PANW) “could both be potential beneficiaries of the recent CRWD incident,” Wedbush analysts wrote, adding that there are some indications that CrowdStrike customers are considering alternatives.
Deutsche Bank analysts said that Microsoft (MSFT), which was connected to the outage as it affected Windows operating systems, could gain as the tech giant also offers cybersecurity solutions.
However, the analysts noted that even if CrowdStrike customers decide to switch to a competitor, “selecting a security vendor is a long process,” making it unlikely that the other cybersecurity providers would see gains immediately.
Backup, Recovery Solutions Providers Could Also Benefit After Tech Outage
CrowdStrike warned customers that threat actors were posing as employees during the chaos brought on by the outage, which analysts said could benefit phishing security providers.
Wedbush analysts said that “Email Security and Phishing Security might get a small tailwind from the incident.” They added that backup and recovery solution providers like Microsoft-backed Rubrik (RBRK) could benefit as well.
CrowdStrike shares have lost over one-quarter of their value since the global tech outage last Friday. SentinelOne shares have gained about 15% over the same period, while Palo Alto Networks shares fell 1% and Microsoft shares lost 5%.