CrowdStrike Holdings, Inc. (CRWD) saw its shares plummet 5.02% in after-hours trading on Wednesday, following news of its involvement in a high-profile cybersecurity investigation. The sharp decline came as investors reacted to reports that the cybersecurity firm is working alongside the FBI to investigate a security incident at Oracle.

According to Bloomberg News, Oracle informed its clients that both the FBI and CrowdStrike Holdings are investigating an undisclosed incident. While the exact nature and scope of the security issue remain unclear, the involvement of both federal law enforcement and a leading cybersecurity firm suggests the matter could be significant.

The market's negative reaction to this news may stem from various concerns. Investors might be worried about potential reputational risks for CrowdStrike if the investigation proves challenging or doesn't yield satisfactory results. Additionally, the incident could heighten overall market anxiety about cybersecurity threats facing major corporations, potentially impacting the broader tech sector. As more details emerge about the Oracle incident and CrowdStrike's role in the investigation, market observers will be closely monitoring any potential impact on the company's future performance and industry standing.