WEBVTT - Market Mayhem: Crowdstrike's Plunge Amid Global Tech Outage

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<v Speaker 3>So we're going to talk about presidential situation in a minute,

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<v Speaker 3>but before we talk about that, we want to talk

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<v Speaker 3>about the global tech out that happened last week that

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<v Speaker 3>is still continuous. Six hundred flights got canceled today. Delta

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<v Speaker 3>had a can six hundred flights today, So there's still

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<v Speaker 3>ramifications of the global tech outage that happened last week

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<v Speaker 3>still continuing this week.

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<v Speaker 2>And a major.

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<v Speaker 3>Player in that is CrowdStrike, a company that we've talked

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<v Speaker 3>about a lot on the show, and as a result

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<v Speaker 3>of that, their stock tumbled over the last two days

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<v Speaker 3>Friday and today, So first thoughts on a global tech outage,

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<v Speaker 3>but then also specifically CrowdStrike. So it's hovering around like

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<v Speaker 3>two sixty five ish areas, so over thirty percent drop

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<v Speaker 3>from it's fifty two week high. So would this be

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<v Speaker 3>a buying opportunity for CrowdStrike?

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<v Speaker 2>Let's go fall more?

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<v Speaker 4>Truth be told, Probably need to wait till two forty

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<v Speaker 4>nine seventy seven. Hell of a drop. Great company. This

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<v Speaker 4>is now for those of you who have been in it.

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<v Speaker 4>If you experienced twenty percent drop rule of thumb, please

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<v Speaker 4>put it in chat. If it drops twenty percent and

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<v Speaker 4>it's not a top five company, you need to sell

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<v Speaker 4>it and repositioned in So two forty nine seventy seven

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<v Speaker 4>if you buy it at seventy seven or two sixty cool.

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<v Speaker 4>But I would be waiting for two forty nine seventy

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<v Speaker 4>seven if I wanted to buy it long term. Troy,

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<v Speaker 4>you're right, CrowdStrike it's not better than TESLAA Elon. I'm

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<v Speaker 4>so sorry. I think what you're saying to me out

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<v Speaker 4>of here. Yeah, because it was. I mean, we got

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<v Speaker 4>a lot of text about it. You know, it's still

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<v Speaker 4>a great company.

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<v Speaker 1>Uh, losing twenty billion dollars in evaluation in the three

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<v Speaker 1>day span is just it's tumultuous. It's a tough run

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<v Speaker 1>for them, But it talks about the importance of cybersecurity.

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<v Speaker 1>The most important thing I thought that came from it

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<v Speaker 1>was like people heard the name CrowdStrike and then it

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<v Speaker 1>became the number one thing searched on Google.

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<v Speaker 2>It was like nobody knew what this company was.

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<v Speaker 1>But it talks about the importance of cybersecurity when it

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<v Speaker 1>can affect banks, when it confects travel, when it can

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<v Speaker 1>affect large enterprise and can affect hospitals, and then it's

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<v Speaker 1>customers as well, right, So you yeah, I mean it

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<v Speaker 1>first started with Microsoft saying hey, we're down. And the

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<v Speaker 1>interesting thing is that Microsoft has its own cybersecurity, but

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<v Speaker 1>they were still using this platform. Obviously it was leading

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<v Speaker 1>in the space. It's gonna be tough. Like like you said,

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<v Speaker 1>I was just gonna say that, thanks.

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<v Speaker 2>Yeah, that.

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<v Speaker 1>You know, we spoke about market shares last week when

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<v Speaker 1>we talk about Tesla inside the EV space. When when

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<v Speaker 1>you talk about market shares inside of cybersecurity, when you

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<v Speaker 1>ask the.

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<v Speaker 2>Question, are they better than Tesla?

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<v Speaker 1>And I was kind of like, nah, there's so much competition,

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<v Speaker 1>those margins are a lot smaller, right, so they don't

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<v Speaker 1>have eighteen percent market share, but like right next to

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<v Speaker 1>them is Microsoft was seventeen percent, and I think Polo

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<v Speaker 1>Alto is next up with probably.

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<v Speaker 2>Like fifteen percent.

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<v Speaker 1>And so you can see when an event like this

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<v Speaker 1>happens from a company like this, when you're the number

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<v Speaker 1>one in the space, you're gonna you're gonna lose.

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<v Speaker 2>Some clients and that's gonna happen. Does it still remain

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<v Speaker 2>a great company? Yeah?

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<v Speaker 1>Will it be number one in the space that is

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<v Speaker 1>in question is in high doubt, high doubt right now,

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<v Speaker 1>But there are still people who still believe in it.

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<v Speaker 1>I just saw Kathy Wood was just invested in twelve million, a.

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<v Speaker 4>Sign that is not going to do well. Look, Kathy,

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<v Speaker 4>I love you, ark shot to the entire team. Y'all

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<v Speaker 4>mean the world to me.

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<v Speaker 2>That is a sign that.

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<v Speaker 1>Is before before the situation was even resolved. You saw

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<v Speaker 1>Elon said, look, we'll out we're no longer using this

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<v Speaker 1>in any of us before they could even.

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<v Speaker 2>Fit fix the issue.

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<v Speaker 1>That doesn't help Microsoft obviously, you know this is a

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<v Speaker 1>huge issue for them. They may look at it as

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<v Speaker 1>like we don't need you as a client anymore. So yeah,

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<v Speaker 1>I think the stock moves down a little bit more.

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<v Speaker 1>We spoke about it in shout out to everybody in

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<v Speaker 1>ey l u H and a few options called. But

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<v Speaker 1>this is why it's like, yo. The long term is great.

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<v Speaker 1>Leaps are great, but if you're going to do short term,

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<v Speaker 1>be very calculated. If you have a percentage, hit your

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<v Speaker 1>percentage and move on. Got a few texts about, hey,

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<v Speaker 1>I was up one hundred and percent in the stock.

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<v Speaker 1>We pulled down to one hundred and ten. What should

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<v Speaker 1>I do? You're still up one hundred and ten percent?

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<v Speaker 2>Rights.

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<v Speaker 1>This is one of those things like count the blessing

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<v Speaker 1>and say, is this an opportunity to watch it fall?

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<v Speaker 1>Or do I take profit? Or do I reposition? I

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<v Speaker 1>think those are the questions that people should ask. But

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<v Speaker 1>it's a good question to ask yourself if you're in

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<v Speaker 1>that position. But I think most importantly is that people

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<v Speaker 1>have strategy and they didn't panic when they saw it

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<v Speaker 1>overall for the week. I mean, it was a tough week,

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<v Speaker 1>but people didn't panic. And that's kind of what I'll

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<v Speaker 1>talk about a little bit more later.

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<v Speaker 4>Gross margins seventy five percent, profit margin two point nine

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<v Speaker 4>to two percent.

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<v Speaker 2>You cannot get me to believe.

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<v Speaker 4>That because you did a single line of code out

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<v Speaker 4>of billions of lines of code that have made a

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<v Speaker 4>worldwide outage happen, or because you push an update to

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<v Speaker 4>Falcon if you go on wickstock Com or score space,

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<v Speaker 4>they got control measurements in place to make sure that

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<v Speaker 4>when the update goes it does not mess up.

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<v Speaker 2>And then kudos to the CEO.

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<v Speaker 4>But when you went on seeing b see in three

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<v Speaker 4>p sixty p I said, oh baby, not a good sign.

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<v Speaker 4>I'm here to tell the truth today. When we get

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<v Speaker 4>to the political commentary, I'm gonna even out and be responsible.

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<v Speaker 4>But right now, CrowdStrike Paula Auto is on you. Microsoft

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<v Speaker 4>is on you. And then, as a result, because now

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<v Speaker 4>more than ever, because of the political climate, we'll get

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<v Speaker 4>to it in a little bit, every company has to

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<v Speaker 4>be stronger and safer than ever because we have unrest

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<v Speaker 4>like we haven't seen in a long period of time.

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<v Speaker 2>SATI is pissed enough.

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<v Speaker 4>Microsoft. I'm disappointed for you at the DEI decision. I

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<v Speaker 4>want to be very clear about that. But SATI is

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<v Speaker 4>not gonna let this fall on them. And then CrowdStrike

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<v Speaker 4>you should have to. You have to look out for

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<v Speaker 4>lawsuits that are going to come their way as a

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<v Speaker 4>result of this. Fellas if you were going to book

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<v Speaker 4>that flight, you got a good excuse to why you

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<v Speaker 4>can't do it today, though tune in the blackout.

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<v Speaker 2>Maybe I was going to.

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<v Speaker 1>But they were adamanted about it not being a cyber attack.

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<v Speaker 1>What's your thoughts on that. I think it was just

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<v Speaker 1>an upgrade issue.

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<v Speaker 4>It was a world wide outage, and you want to

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<v Speaker 4>have me believe that y'all messed up in the uploading

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<v Speaker 4>of the.

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<v Speaker 2>New software program.

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<v Speaker 4>We've had Houston without power center point eight hundred million

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<v Speaker 4>in mobile power units that never touch down in Houston.

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<v Speaker 4>We'll get to that one day. Presidential attack or assassination attempt.

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<v Speaker 4>President incumbent steps down, and you want to tell me

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<v Speaker 4>that you didn't fuck up the code or the software push? Yeah, right,

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<v Speaker 4>because if you say a cyber attack, you're out of business.

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<v Speaker 1>Soilverwick the largest in history, the largest outage in the

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<v Speaker 1>history of the world.

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<v Speaker 4>Brosign's in the airports wild what yeah, yeah, Rest in peace,

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<v Speaker 4>John McAfee. We're gonna have a conversation about John on

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<v Speaker 4>blackout one day. But that's I got a call the

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<v Speaker 4>International Monetary Fund mature protective first.

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<v Speaker 5>So an illegal alien from Guatemala charged with raping a

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<v Speaker 5>child in Massachusetts. An MS thirteen gang member from Al

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<v Speaker 5>Salvador accused of murdering a Texas. Man of Venezuelan charged

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<v Speaker 5>with filming and selling child pornography in Michigan. These are

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<v Speaker 5>just some of the heinous migrant criminals caught because of

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<v Speaker 5>President Donald J. Trump's leadership. I'm Christy Noman, the United

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<v Speaker 5>States Secretary of Homeland Security. Under President Trump, attempted illegal

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<v Speaker 5>border crossings are at the lowest levels ever recorded, and

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<v Speaker 5>over one hundred thousand illegal aliens have been arrested. If

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<v Speaker 5>you are here illegally, your next you will be fined

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<v Speaker 5>nearly one thousand dollars a day, imprisoned, and deported. You

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<v Speaker 5>will never return. But if you register using our CBP

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<v Speaker 5>home app and leave now, you could be allowed to

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<v Speaker 5>return legally. Do what's right, leave now. Under President Trump,

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<v Speaker 5>America's laws, border and families will be protected.

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<v Speaker 2>Sponsored by the United States Department of Homeland Security,