Stock Market Update July 2025: CrowdStrike Crash, Netflix Surge & Airline Groundings

Key market highlights for July 19, 2024, brought to you by ZAMONA.

The cybersecurity firm CrowdStrike (CRWD) saw its shares plunge following a worldwide IT disruption that also affected Microsoft (MSFT), dragging its stock down. This tech outage forced Delta Air Lines (DAL), United Airlines (UAL), and American Airlines (AAL) to ground flights temporarily. Meanwhile, Netflix (NFLX) stock climbed after exceeding earnings expectations despite cautious guidance for the third quarter. Hawaiian Electric (HE) shares surged after news of a major wildfire lawsuit settlement, while American Express (AXP) shares declined due to revenue shortfalls. U.S. stock futures remain steady as investors digest these developments. Here’s what you need to know today.

1. CrowdStrike and Microsoft Stocks Tumble Amid Global IT Failure

Shares of CrowdStrike (CRWD) fell sharply by 12%, while Microsoft (MSFT) dipped around 1.5% in premarket trading after a significant IT outage disrupted computer systems worldwide. The issue, triggered by a problematic update from CrowdStrike, caused Windows machines running the CrowdStrike Falcon agent to crash and reboot repeatedly. Microsoft confirmed the virtual machines running Windows Client and Server encountered critical errors. CEO George Kurtz acknowledged the firm's update defect as the source of the disruption.

2. Major U.S. Airlines Halt Flights Due to Tech Disruption

The Federal Aviation Administration (FAA) issued ground stop orders for Delta, United, and American Airlines early Friday as the widespread IT outage impacted airport operations. Passengers faced issues with bag retrieval and flight rebooking amid understaffed terminals. Operations resumed for American Airlines by 5 a.m. ET, but all three carriers saw slight premarket stock declines.

3. Netflix Stock Climbs After Strong Q2 Earnings

Netflix (NFLX) rebounded in premarket trading, buoyed by better-than-expected second-quarter results. The streaming giant reported $9.56 billion in revenue and $2.15 billion net income, surpassing analyst estimates. Subscriber growth exceeded 8 million for the quarter. However, the company’s third-quarter revenue forecast of $9.73 billion fell short of market expectations, initially causing investor concern.

4. Hawaiian Electric Shares Surge Following Maui Wildfire Lawsuit Settlement

Hawaiian Electric (HE) shares jumped 37% premarket after reports revealed a settlement exceeding $4 billion to resolve lawsuits from last year’s devastating Maui wildfires. Hawaiian Electric is expected to contribute about $1.5 billion, with payouts to affected homeowners and businesses distributed over four years. The settlement also involves state and local governments and Charter Communications (CHTR), whose stock remained stable.

5. American Express Shares Slip on Revenue Shortfall Despite Earnings Beat

American Express (AXP) shares dropped roughly 2% in premarket after reporting second-quarter revenue of $16.33 billion, slightly below the $16.56 billion consensus. Nonetheless, earnings per share of $4.15 exceeded analyst estimates. The company raised its full-year EPS guidance to a range of $13.30 to $13.80, up from previous forecasts.

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