The cybersecurity company had a heavy day on the stock market following global network issues, and the CEO suffered a significant loss.
It was another tough day for the American stock markets on Friday. The broad decline on Wall Street came after the technology index Nasdaq had its worst day since 2022 on Wednesday, followed by a broad fall on Thursday.
Here’s how it looked at the close:
- The broad aggregate index S&P 500 fell 0.71 percent
- The technology index Nasdaq fell 0.81 percent
- The Dow Jones index fell 0.93 percent
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Trials Await Investors
It was a heavy week overall for the Nasdaq index. The weekly fall was 3.65 percent. The S&P 500’s decline was just under 2 percent. This marks the weakest week for both indices since April, according to CNBC.
The Dow Jones index, on the other hand, ended up climbing for the week, after rising the first three days.
Plummeted After Data Issues
Crowdstrike’s stock fell heavily after global network issues hit the world on Friday.
The stock ended the day down a whopping 11.1 percent.
The cybersecurity company made an update overnight that caused the issues, according to the website Times Now.
Windows machines worldwide faced problems on Friday morning. Crowdstrike’s software is used by a number of large companies and institutions around the world to protect them against various types of data attacks.
Crowdstrike reported around 11:50 that the problem had been identified and isolated, and that a fix was underway, according to NTB.
Huge Loss for CEO
The sharp drop in Crowdstrike’s stock also dealt a significant blow to CEO George Kurtz.
He holds 1,127,843 shares in the company, according to documents filed with the U.S. Securities and Exchange Commission (SEC) earlier this week.
These shares were worth nearly $387 million at closing yesterday before the data issues. After the stock drop, they are worth just under $344 million.
This represents a paper loss of $43 million for Kurtz today. That amounts to about 470 million kroner at the current exchange rate.
Marketwatch has reported on the CEO’s significant loss. The website also notes that Kurtz’s total compensation as CEO last year was $47 million.
Netflix Surprised Expectations
Streaming giant Netflix released its figures for the second quarter after the Wall Street close on Thursday evening. Once again, they attracted far more new customers than expected.
The company gained 8.05 million new subscribers in the quarter.
The number of new subscribers has long been the most important metric the market evaluates the company on. Previously, it was expected to increase by 4.87 million, according to analyst estimates gathered by Bloomberg.
Netflix generated $9.56 billion in revenue in the second quarter, versus an expected $9.54 billion. The earnings came in at $4.88 per share, against expectations of $4.74.
Netflix’s stock fell 1.51 percent on Friday.
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