CrowdStrike (CRWD) shares plunged 12% in afternoon trading Friday, while those of its rivals rose, after the cybersecurity firm said an update "defect" caused a 澳洲幸运5官方开奖结果体彩网:worldwide outage in Microsoft’s (MSFT) cloud services.

In a statement, CrowdStrike CrowdStrike 澳洲幸运5官方开奖结果体彩网:Chief Executive Officer (CEO) George Kurtz b🅷lamed the outag🐬e on a “defect” in the firm's update of its Falcon software. The outage impacted services globally of airlines, banks, and other businesses Friday.

"CrowdStrike is actively working with customers impacted by a defect found in a single content update for Windows hosts. Mac and Linux hosts are not impacted,” Kurtz said in a post on X. “This is not a security incident or cyberattack. The issue has been identified, isolated and a fix has been deployed.”

Shares of Rival🐎s Palo Alto Networks, SentinelOne Risꦫe

Investors bought into CrowdStrike's rivals as the scale of the damage from the cybersecurity firm's update was increasingly known. Palo Alto Networks (PANW) rose 1.7% while SentinelOne (S) jumped 8%.

"This is a black-eye moment for CrowdStrike, and I think for the cybersecurity sector," Wedbush analyst Dan Ives told CNBC in an interview. "The big issue is the brand damage, because CrowdStrike today becomes a household name but not in a good way."

"I don't think this changes the long-term story (for CrowdStrike), but other competitors—Palo Alto and others—they will try to take advantage of this," he added.

Microsoft's shares were down about 1%, a bit more than the S&P 500. The company was "working closely with CrowdStrike and across the industry to provide customers technical guidance and support to safely bring their systems back online," CEO Satya Nadella said in a post on the social-media network X around midday.

CrowdStrike shares had risen 34% in 2024 through Thursday's close to $343.05.