shares dropped ahead of Tuesday’s opening bell as a report about potential legal action from
gave the cybersecurity company’s investors another reason to worry.
The stock was down 4.5% to $247.14 in premarket trading. Delta has hired big-name attorney David Boies to seek damages from CrowdStrike and
after a tech outage earlier this month forced the airline to scrap thousands of flights, CNBC reported on Monday.
CrowdStrike and Microsoft didn’t immediately respond to a Barron’s request for comment. Delta declined to comment.
As of Monday’s close, CrowdStrike shares had slid 25% since July 19, when a software bug crippled Microsoft PCs, grounded flights, and disrupted banks.
At least 16 analysts have cut their price targets over the past week and a half, according to data from FactSet, although most of those have stuck to the Buy or Overperform ratings they’d given CrowdStrike before the glitch.
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JPMorgan’s Brian Essex, who covers software for the Wall Street bank, slashed his end-of-2025 price target for CrowdStrike from $400 to $330 on Monday—but added that the cybersecurity company’s “first class” reaction to the outage could help it in the long-term.
“We view the incident as a black swan event and think that the quality of response from the company will go a long way toward supporting the business and the brand longer term,” he wrote in a research note.
Delta shares climbed 0.4% to $43.34 in early trading. Microsoft’s stock edged up 0.1% to $427.18, with the software giant set to post its second-quarter earnings after Tuesday’s closing bell.
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Write to George Glover at george.glover@dowjones.com
