Ransomware, Microsoft Corporation, Microsoft Azure, Computer security, Cloud computing 5 Cybersecurity Stocks I am Doubling Down On
Some might argue that the run is over. I think this base will continue to prosper in the next five to 10 years. Lets talk about some stocks and etfs that you should seriously consider adding to your portfolio personally im invested in most of the stocks. You will hear in this video. Hey guys, welcome to think finance. My name is raj and on this channel i talk about personal finance, investment ideas, stocks and ways to make money since cobit 19, cyber attacks have gone up big in the same period and not surprisingly, businesses focused on i.t security and protection have prospered. This is probably the most significant ransomware attack on one of our critical infrastructures ever floating pipeline is the operator of the largest pipeline carrying fuel from the gulf coast to the northeast. It was hit with a ransomware attack. Last month hackers took our gasoline hostage now, theyre attacking our meat supply. Jbs says units in australia and north america were hit over the weekend by what the company is calling an organized cyber attack on its information system. Im sure youve heard about the colonial pipeline. Ransomware attack that halted the pipeline management operations. The impact was so severe that the governor of georgia declared a state of emergency. The oil giant reportedly had to pay a ginormous 5 million dollars to gain back access to its systems or how about the massive attack on microsoft exchange servers that allowed hackers to exploit vulnerability that opened doors to tons of confidential data.
It is believed that around 250 000 servers, nine government agencies and over 60 000 private companies in the u.s alone were affected by the attack. Biden has warned that cyber attacks could lead to a real shooting war, and last week he signed an executive order aimed to preventing hacks on americas critical infrastructure. All this means one thing: businesses focused on cyber security should continue to prosper in this video lets talk about what next for the space and stocks im invested in something you should consider as well with all this political attention. There will be a lot of push from the public sector. Of course, private sector has been on this for years now and with the recent work from anywhere trend, most enterprises have set aside bigger portions of their i.t budget towards security. Global market insights released a report last week, estimating the cyber security market to grow significantly from 170 billion dollars in 2020 to 400 billion dollars by 2027.. That is a 15 compounded annual growth rate, simple terms its getting bigger. They think the demand for cyber protection products and solutions will grow for a few reasons, number one demand from enterprises: number two government guidelines and initiatives focused on cyber security; number three adoption of cloud and number four investments by major tech companies in advanced cyber security solutions. This aligns to another report that is, estimating the cyber security market to reach 418 billion by 2028.. We have to all realize that the cyber crime ecosystem is a business.
It is a a large underground business. It has all elements similar to a legitimate legal business, and so there are partnerships and there is malware developers and there are distributors. So while it might feel that cyber security stocks have run a lot and youve missed a rally, i think we are just getting started. You should consider buying any dip in the space for your long term. Portfolio lets look at some stocks and etfs that, i think, will prosper in this environment. There are tons of stocks that can be tagged with cyber security. I tend to focus on the leaders, the trendsetters or companies that are considered innovators in what they do. It is similar to the ev space. There are tons of companies trying to build evs, including chinese names. I tend to invest in the leader, the company that pushed the entire industry forward. Tesla lets start with crowdstrike. These guys provide real time protection by operating on the cloud research from gartner in their magic quadrant named crowdstrike as a leader for endpoint protection platform. They have a subscription based revenue model, which means recovering revenue. In 2021, crowdstrikes recurring revenue grew 84 percent year over year. The company also has 1.6 billion dollars in cash, with a profitable business enterprise reach and deep pockets. Crowdstrike has the capability to continue driving innovation and lead the way when it comes to securing physical assets. Think data centers fortinet products are some of the best in the industry.
Some argue that fortinets strength is in hardware, mostly chips and other security, equipments and less in cloud based solutions as it stands today it is true, but that only means opportunity to grow. Indeed, they have started to make investments and have built their own suite of next gen software based security tools, club that, with over three billion dollars in cash and a healthy balance sheet, i see a lot of potential for growth and do believe that fortinet has the Ability to invest, innovate and grow next octa another leader in what they do. Gartner has consistently named octa as a leader for access management, as the world continues to embrace the cloud demand for identity and access management will grow. The company recently acquired one of their largest competitors, auth o with this acquisition. It is safe to assume they will own the access management space. If crowdstrike is the new kid on the block, palo alto is a more stable play. The company is aiming to be one. Stop platform to address enterprise security needs heres. An interesting metric. 86 percent of investors are institutional investors for this company. This, usually, is a good sign since analysts and other companies also think that this is a good stock to own. Finally, lets talk: cloudflare the companys primary line of business is cdn or cloud delivery network. In simple terms, it helps load websites faster or you, dont have to wait for that. Video to render cloudflare also offers security solutions that protect companies against cyber attacks like ddos and ransomware.
Security is a big market for this company and given the recent push company is well positioned to grow. Now all of these stocks have risen big time, so i would not jump in with all the cash youve got and buy them tomorrow. Buy in increments, buy more on major dips and buy consistently. If you really want to keep things simple, consider these two etfs, of course they are called cyber and hack cyber – is focused on larger traditional companies, while hack offers a broader range, including smaller startups, theres, a decent amount of overlap between the two etfs. Indeed, 87 of cyber holdings are also included in hack pick one you dont need both with cyber crimes on the rise government and private organizations are working on ways to fight and protect i.t infrastructure systems and operations, while it might sound like the ship has sailed. I think cyber security names will continue to prosper for years to come, get some for your portfolio.