09:43 AM EDT, 07/19/2024 (MT Newswires) -- CrowdStrike Holdings ( CRWD ) and Microsoft ( MSFT ) will face a PR nightmare after a CrowdStrike ( CRWD ) update caused defect issues for Windows hosts, leading to a major global IT outage early Friday, Wedbush Securities said.

"Today CrowdStrike ( CRWD ) becomes a household name but not in a good way and this will take time to settle down," Wedbush said in a Friday note. According to the investment firm, the issue is less pressing for Microsoft ( MSFT ) as the "blue screen of death" experienced by its users was related to the CrowdStrike ( CRWD ) update.

Wedbush, however, reiterated its "positive long-term view" on CrowdStrike ( CRWD ) and the cybersecurity sector, saying the outage could pave the way for "competitive displacements."

Shares of CrowdStrike Holdings ( CRWD ) were down 11.5% in recent trading.

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