Crowdstrike Holdings warning sparks selloff in cybersecurity stocks

FILE PHOTO: 3D printed models of people working on computers and padlock are seen in front of words CYBER SECURITY and binary code in this picture illustration taken, February 1, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) -A warning from Crowdstrike Holdings Inc that clients were cutting back on spending and delaying purchases due to an economic slowdown slammed cybersecurity stocks on Wednesday, inflicting fresh pain on the battered sector.

Crowdstrike's shares sank nearly 19% in morning trading after the company forecast current-quarter revenue on Tuesday that fell short of analysts' estimates, while peers Zscaler Inc, SentinelOne Inc and Palo Alto Networks Inc fell between 2% and 11%.