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Stock Market – Investing on Hot Stocks of Cybersecurity Companies -update

Global spending on information technology (IT) declined in 2020 due to the COVID-19 pandemic, but cybersecurity spending bucked the trend. Organizations were faced with new security challenges as cloud computing and remote work became essential. As a result, the prices of many cybersecurity stocks soared, and demand for next-gen security software in this new digital era is stronger than ever.

Recent high-profile security breaches of the networking software company SolarWinds(NYSE:SWI) and the Colonial Pipeline illustrate the massive need for sophisticated security services — and the real-world consequences if an organization is lax with its IT security practices. Global spending on cybersecurity is thus expected to exceed $120 billion in 2021 and will likely continue to be a high-growth industry. Cybersecurity stocks are a red-hot niche of the tech industry, so knowing how to invest in them can yield some big returns in the decade ahead.

Today, the top companies are:

CrowdStrike Holdings (NASDAQ:CRWD)
Zscaler (NASDAQ:ZS)
SentinelOne (NYSE:S)
Palo Alto Networks' (NYSE:PANW)
Company Details
A cloud-native software company provides endpoint security -- protection for devices such as laptops, PCs, and servers, and any other device connected to a network. Because it’s cloud-based, CrowdStrike is particularly well-suited for supporting remote work.
Another cloud-native security vendor, It works in tandem with endpoint security services to help keep data secure. Zscaler got started with software designed for cloud computing protection, but it has since added new internet security and end-user monitoring products.
It is a pioneer of identity access management, which rethinks traditional security by using what’s called zero-trust architecture. This type of identity management constantly requires verification of a user before allowing access to data and applications.
The company’s initial public offering (IPO) in June 2021 raised $1.2 billion in cash and valued the company at $10 billion, making SentinelOne's IPO the largest ever for a cybersecurity company. This small company operates a cloud-based endpoint security platform, and its ability to automatically detect and resolve cybersecurity threats is being well-received in the market.
Legacy company with its specialty is rooted in firewalls. The company's highly profitable platform has helped it to acquire more than a dozen smaller cloud-native firms in the past few years. Palo Alto Networks has been able to maintain double-digit percentage revenue growth and remains the largest pure-play cybersecurity operation by revenue.
Fortinet is also one of the largest cybersecurity firms in the world by revenue. Like its peer Palo Alto Networks, it has maintained double-digit percentage growth and is highly profitable. But unlike Palo Alto Networks, Fortinet has invested in its organic development of cloud security to remain competitive.
Stock Price Oct 2021
Stock Price April 22 2022
$205.62 -$2.23 -2.0%
$206.47 -$5.00 -2.4%
$136.33 -$2.44 -1.8%
$32.68 -0.85 -2.5%
$571.58 -20.42 -3.45%
$304.29 -$16.97 -5.3%
Stock Price Aug 06, 2022
$191.17 +1.93 +1.02%
$163.42 +1.43 (+0.88%)
$104.47 +0.40 (+0.38%)
$26.36 _0.10 (+0.38%)
$501.37 -0.33 (-0.07%)
$53.39 +0.78 (+1.48%)

As the reader can see, the market has taken a negative turn and most stocks are down. Including Cybersecurity company stocks. From all the companies we considered TOP in OCtober 2021, only one of them (Palo Alto Networks) has a price higher than what it was just a few months ago.

In any event,  Merysol Security is NOT a financial advisor and in no way we mean to offer you any kind of counsel.  We are just simply pointing our that, if you are interested in how cybersecurity companies perform in the financial markets, we can offer some of their stock information..

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