Technically, Microsoft tests and certifies Crowdstrike's code, but that's probably too slow for responding to malware, so Crowdstrike bypasses the process by updating definition files that the certified code reads. The code is set up as a driver, even though there's no hardware device for it to drive. Being a driver means it's not an application that could fail without bringing the system down, instead it's part of the kernel (i.e. system software). That's so that it can get access to info that an application wouldn't get. It's marked as a "boot-start driver", which means that once it's on a PC, the PC can't start without it, except in safe mode. It's speculated that the definition files could contain p-code, which means the driver acts like a code interpreter, which means the source code (the p-code in the definition files) is executed on-the-fly (instead of being compiled to executable object code). But that's only speculation so far as I know. My info is from retired Microsoft software engineer "Dave's Garage", and I suggest finding the source rather than relying on this comment. He thinks it's likely that Crowdstrike's driver has inadequate error checking and parameter checking of the definition files. Maybe Microsoft could be criticized for not having a class of boot-start drivers that get their status revoked if they cause failure on successive startup attempts (just my own thought).
Great recap and comments. Longtime shareholder and fan of CRWD, but I agree they got too arrogant and careless. I recall Kurtz was kind of an ass irt PANW’s replatforming strategy few months ago, ridiculing them that PANW had to give away products. "free is not free" and "good enough is not enough" he said. Kind of took a victory lap on PANW’s bad ER and stock drop. Now he’s on the hot seat and eating crow. What comes around goes around.
guys i really value your channel and come back regularly for all the info you share about semis etc. but this time you fall into this trap as many other people who do not have experience in software engineering or system administration and you unfortunately spread misinformation and incorrect information - i wanted to make a much longer comment but i highly recommend you watch Dave's Garage episode "CrowdStrike IT Outage Explained by a Windows Developer" and you will understand the problem - this is not MSFT problem, this is not Windows problem, this is purely CRWD problem, they caused this outage and only they. BSOD is the only way the OS could react in this situation.
Firstly, thank you for the comment and support, we appreciate it! We did already view the Dave's Garage episode on what happened. Secondly, sorry to hear you think we are spreading misinformation. That sounds a stretch, we didn't discuss any deep level technicalities. The video you referenced itself admitted not knowing the whole story. We thought we were sufficiently critical of CRWD, as we were in past videos, given the issue they caused. As for Windows, we will reserve any further criticism, though, until more details emerge. For now, we believe the investment information we provided is sound and accurate.
@@chipstockinvestor in my opinion misinformation or incorrect information is being said by you in the video starting at 8:24 - this is not Microsoft's issue, Microsoft is most definitely not responsible for testing 3rd party software (they just provide OS, it is your responsibility to use stable software), and CRWD falcon driver update is not conflicting with any of MSFT code, latest falcon update contained corrupted file and this is 100% their fault that it crashed the OS. Much smarter people already researched this issue and it is clearly buggy code that does not make appropriate checks of pointers and makes null pointer dereference. For more info watch Low Level Learning video "crowdstrike accidentally destroys 8,000,000 computers (banks, hospitals, airports)". About "not knowing the whole story" - from the technical standpoint we already know the full story, mentioned Low Level Learning video tells you what has happened, what we don't know is how in the world something like a corrupted file made its way to production.
Wow, very, very awesome insights in CrWD and the ripple effects of the recent incident into other sectors. Thank you for providing a comprehensive view.🎉❤
The Falcon Platform is the word leading product for end point security, therefore it is used globally by all industries. Who should replace them? There is a strong demand for such products since the risks become bigger every year. I am sure that Crowdstrike will come back stronger as before because they will learn from this damage and get even more customers who will pay. This will make the company's brand even more known and likely attract new customers in the future.
It was tempting to jump into the roller coaster car of CRWD stock on Friday, but as we see today ($275 and falling at 6:50 pt) there is a ways to hit the bottom, which I’m guessing to be $220. Good time to dollar cost average down.
When something has just been going up and up, it’s often a safe bet that there are a lot of momentum investors in it who can be counted on to bail when, by their preferred metrics, the uptrend is broken.
Selling causes selling, in other words. And it’s often the worst with he companies that have been doing the best, because finance pros are taught (and these teachings are data based) that momentum investing works
You just don't know where the bottom is. Considering all the lawsuits ahead and damage to its reputation and its effect on future clients, this mess will take a while to "bottom out". The price will stabilize at some point, but it will continue to decline for some periods. In the meantime, investment money will be allocated to Crowdstrike's competitors. I sold all my positions today only because I wasn't technically allowed to do it on Friday.
I went through a hack/outage with a software company. The issue was all the top talent left the company due to the stigma of being associated with them. It slowly became a mess. I use to see so many people wearing Crowdstrike hats/shirts at my gym. They aren't wearing them anymore lol Does lightning strike twice? who knows....but now you can BET they will be facing brain drain and that is scary given how incompetent they were!
I don't want to sound like a broken record because I've brought this up before - but I wonder if you all might be interested in commenting on some forgotten semiconductor names, namely those specializing in IoT - SYNA and SLAB are a couple that come to mind. I think it's interesting that JPMorgan recently initiated coverage on them as overweight - thesis boils down to IoT growth outpacing overall semi growth in the coming years along with an upcoming cyclical recovery.
I guess it is impossible to evaluate as of know at what price CRWD should be trading at. The uncertainity surrounding the future of CRWD is massive. However, when it seems like the stock has bottomed reactively to the news, it might become a buying opportunity if the damage to CRWD is not that bad in the long term and CRWD gets their shit together and never lets something like this happen again. Very risky to buy for sure but the market usually assumes the worst when it comes to scandals like this. Even Equifax survived and trades at all time highs now.
Worst case scenario is CRWD starts losing corporate customers. I even heard Elon Musk is discontinuing using them. Be careful. Either stay away of it now until the dust settles, or short it
Great update! I’m a big believer in the barbell approach. Is there an ETF that meets your expectation as a barbell to VUG or VGT? While Berkshire isn’t an ETF , it could probably work because it holds so many non-correlated tech assets. ???
That's how we view Berkshire, Shannon, as a "value stock" that's really an ETF barbell for the higher growth stuff. Nothing sexy about BRK, unless it's been owned for a long time, then it suddenly seems pretty cool!
i mean to say msft stock has not suufered from the debacle. how long crwd stock will take to reocver and are the insurances on earnings of crwdstrike. thanks
I knew in the back of my head that Microsoft was not done Disappointing me. Even though I don't use anything Microsoft for years, they still were able to get me through a few shares of Crowdstrike. Never underestimate Microsoft's ability to Fck Things Up.
This channel should focus on the ramifications to the stock price and potential future instead of driving to devolve into the details of technology. It's very clear the person speaking does not understand what happened at all in enough detail to be explaining the risks going forward.
Technically, Microsoft tests and certifies Crowdstrike's code, but that's probably too slow for responding to malware, so Crowdstrike bypasses the process by updating definition files that the certified code reads. The code is set up as a driver, even though there's no hardware device for it to drive. Being a driver means it's not an application that could fail without bringing the system down, instead it's part of the kernel (i.e. system software). That's so that it can get access to info that an application wouldn't get. It's marked as a "boot-start driver", which means that once it's on a PC, the PC can't start without it, except in safe mode. It's speculated that the definition files could contain p-code, which means the driver acts like a code interpreter, which means the source code (the p-code in the definition files) is executed on-the-fly (instead of being compiled to executable object code). But that's only speculation so far as I know. My info is from retired Microsoft software engineer "Dave's Garage", and I suggest finding the source rather than relying on this comment. He thinks it's likely that Crowdstrike's driver has inadequate error checking and parameter checking of the definition files. Maybe Microsoft could be criticized for not having a class of boot-start drivers that get their status revoked if they cause failure on successive startup attempts (just my own thought).
Good stuff, thank you for sharing! We'll go find that video you referenced.
Great recap and comments. Longtime shareholder and fan of CRWD, but I agree they got too arrogant and careless. I recall Kurtz was kind of an ass irt PANW’s replatforming strategy few months ago, ridiculing them that PANW had to give away products. "free is not free" and "good enough is not enough" he said. Kind of took a victory lap on PANW’s bad ER and stock drop. Now he’s on the hot seat and eating crow. What comes around goes around.
guys i really value your channel and come back regularly for all the info you share about semis etc. but this time you fall into this trap as many other people who do not have experience in software engineering or system administration and you unfortunately spread misinformation and incorrect information - i wanted to make a much longer comment but i highly recommend you watch Dave's Garage episode "CrowdStrike IT Outage Explained by a Windows Developer" and you will understand the problem - this is not MSFT problem, this is not Windows problem, this is purely CRWD problem, they caused this outage and only they. BSOD is the only way the OS could react in this situation.
Firstly, thank you for the comment and support, we appreciate it! We did already view the Dave's Garage episode on what happened.
Secondly, sorry to hear you think we are spreading misinformation. That sounds a stretch, we didn't discuss any deep level technicalities. The video you referenced itself admitted not knowing the whole story. We thought we were sufficiently critical of CRWD, as we were in past videos, given the issue they caused.
As for Windows, we will reserve any further criticism, though, until more details emerge. For now, we believe the investment information we provided is sound and accurate.
@@chipstockinvestor in my opinion misinformation or incorrect information is being said by you in the video starting at 8:24 - this is not Microsoft's issue, Microsoft is most definitely not responsible for testing 3rd party software (they just provide OS, it is your responsibility to use stable software), and CRWD falcon driver update is not conflicting with any of MSFT code, latest falcon update contained corrupted file and this is 100% their fault that it crashed the OS. Much smarter people already researched this issue and it is clearly buggy code that does not make appropriate checks of pointers and makes null pointer dereference.
For more info watch Low Level Learning video "crowdstrike accidentally destroys 8,000,000 computers (banks, hospitals, airports)".
About "not knowing the whole story" - from the technical standpoint we already know the full story, mentioned Low Level Learning video tells you what has happened, what we don't know is how in the world something like a corrupted file made its way to production.
Wow, very, very awesome insights in CrWD and the ripple effects of the recent incident into other sectors. Thank you for providing a comprehensive view.🎉❤
The Falcon Platform is the word leading product for end point security, therefore it is used globally by all industries. Who should replace them? There is a strong demand for such products since the risks become bigger every year. I am sure that Crowdstrike will come back stronger as before because they will learn from this damage and get even more customers who will pay. This will make the company's brand even more known and likely attract new customers in the future.
That’s was my investment thesis when I started a position in CrowdStrike last Friday.😂
You never gave clarification as if and when to buy Crowdstrike. Very disappointing - CYA .
It was tempting to jump into the roller coaster car of CRWD stock on Friday, but as we see today ($275 and falling at 6:50 pt) there is a ways to hit the bottom, which I’m guessing to be $220. Good time to dollar cost average down.
When something has just been going up and up, it’s often a safe bet that there are a lot of momentum investors in it who can be counted on to bail when, by their preferred metrics, the uptrend is broken.
Selling causes selling, in other words. And it’s often the worst with he companies that have been doing the best, because finance pros are taught (and these teachings are data based) that momentum investing works
You just don't know where the bottom is. Considering all the lawsuits ahead and damage to its reputation and its effect on future clients, this mess will take a while to "bottom out". The price will stabilize at some point, but it will continue to decline for some periods. In the meantime, investment money will be allocated to Crowdstrike's competitors. I sold all my positions today only because I wasn't technically allowed to do it on Friday.
Good comment about de-worse-ification. Well explained. Thanks guys!
Thanks for watching!
I went through a hack/outage with a software company. The issue was all the top talent left the company due to the stigma of being associated with them. It slowly became a mess. I use to see so many people wearing Crowdstrike hats/shirts at my gym. They aren't wearing them anymore lol Does lightning strike twice? who knows....but now you can BET they will be facing brain drain and that is scary given how incompetent they were!
So many questions left to be answered!
Excellent review, thanks for enlightening us!
Really great !! Thanks for the good work
all the computers of amazon facilities got that blue page screens. that was a global issue for 4 hours
I don't want to sound like a broken record because I've brought this up before - but I wonder if you all might be interested in commenting on some forgotten semiconductor names, namely those specializing in IoT - SYNA and SLAB are a couple that come to mind. I think it's interesting that JPMorgan recently initiated coverage on them as overweight - thesis boils down to IoT growth outpacing overall semi growth in the coming years along with an upcoming cyclical recovery.
accrding to your narration, sft is equalt reposnible fr tis debacke but its sare ave not suffered at all.
I guess it is impossible to evaluate as of know at what price CRWD should be trading at. The uncertainity surrounding the future of CRWD is massive. However, when it seems like the stock has bottomed reactively to the news, it might become a buying opportunity if the damage to CRWD is not that bad in the long term and CRWD gets their shit together and never lets something like this happen again. Very risky to buy for sure but the market usually assumes the worst when it comes to scandals like this. Even Equifax survived and trades at all time highs now.
Really good counterpoints, it's true, CRWD will survive this event!
Similar drop earlier this year and a huge climb after. Same here.
Worst case scenario is CRWD starts losing corporate customers. I even heard Elon Musk is discontinuing using them. Be careful. Either stay away of it now until the dust settles, or short it
Great update! I’m a big believer in the barbell approach. Is there an ETF that meets your expectation as a barbell to VUG or VGT? While Berkshire isn’t an ETF , it could probably work because it holds so many non-correlated tech assets. ???
That's how we view Berkshire, Shannon, as a "value stock" that's really an ETF barbell for the higher growth stuff. Nothing sexy about BRK, unless it's been owned for a long time, then it suddenly seems pretty cool!
@@chipstockinvestor Great choice!!!
I am wondering about the litigation myself. A lot of money was lost. Someone will have to pay something.
Love you too
What you think about semtech technology? Do you think it it would be worth covering it on your channel?
i mean to say msft stock has not suufered from the debacle. how long crwd stock will take to reocver and are the insurances on earnings of crwdstrike. thanks
This is a reason I prefer the govts allow Apple to maintain a semi closed garden.
they definitely ruined my weekend! This one might be a falling knife for some time
I knew in the back of my head that Microsoft was not done Disappointing me. Even though I don't use anything Microsoft for years, they still were able to get me through a few shares of Crowdstrike. Never underestimate Microsoft's ability to Fck Things Up.
Very good explanation. Thank you!
Old system WSUS uses Patch Managment, wait for white list then deploy to a small number of endpoints. What happened to systematic approach?
This channel should focus on the ramifications to the stock price and potential future instead of driving to devolve into the details of technology. It's very clear the person speaking does not understand what happened at all in enough detail to be explaining the risks going forward.
Lol thank you for the feedback
So guys are you buying the dip now or are you waiting for it to stabilize?
👀
crwd's loss is who's gain..who do they go head to head with..
There was a slide with some of the endpoint security cos near the beginning of the video. Palo Alto Networks also has an endpoint product.
You sound salty with cybersercurity folks..hahaha..
Cut your losses and sell. Its going below $220
😮