CrowdStrike’s Stock Is Still Falling. Cathie Wood’s ARK Bought Some

Shares of CrowdStrike (CRWD) are still falling after a faulty update caused a global outage on Friday, sending the cybersecurity firm’s shares plummeting, but some investors—including Cathie Wood’s ARK Invest—are trying to buy the dip.

CrowdStrike shares were recently down about 2%, extending a more-than-23% drop from the day before the incident.

Customers Are Still Working Through Issues

Though the company “provided a workaround and new update fairly early,” many customers are still experiencing outages as “recovery efforts are being hampered by lack of on-site IT personnel” to administer the workaround, Wedbush analysts wrote.

Citi analysts outlined risks presented by the outage, highlighting the possibility of the need to offer discounts, customers trading down to less-expensive offerings, or the potential for lost deals. CrowdStrike’s second-quarter earnings results are expected in September, and investors will watch for the impact of the incident on the company’s outlook.

Deutsche Bank analysts said that after “the widest IT outage in modern history,” with an estimated 8.5 million Windows devices affected, some investors may see the double-digit “pullback in a high-quality stock as a buying opportunity.”

Among those who took CrowdStrike’s drop as an chance to buy at a discount: ARK Invest’s Next Generation Internet ETF (ARKW), which reportedly added $8.25 million in CrowdStrike shares to its fund on Friday.