Cybersecurity company stocks value after hack

Charlie Taylor

The actions of cybersecurity companies have exploded recently, as a series of high-profile hacks lead to an aggressive US government response and could signal strong long-term demand for their services. alarming. McDonald's Corp. confirmed a data breach in South Korea and Taiwan on Friday, the day after hackers stole Electronic Arts Inc's source code and related internal tools. Earlier this month, JBS USA said it had paid rescue criminals responsible for a cyber attack in May that disrupted meat processing in North America and Australia. This wave of breaches follows a high-profile attack on Colonial Pipeline Co. and a ransomware attack on CNA Financial Corp . last month, as well as a December breach involving SolarWinds. These attacks provided a favorable wind to the stocks, pushing companies like Cloudflare Inc. and CrowdStrike Holdings Inc. to multi-month highs. “This is one of the only industries where massive failures act as massive catalysts as hacks reinforce the need for security services,” said Ryan Issakainen, senior vice president of First Trust Portfolios, by telephone to Bloomberg. The First Trust Nasdaq Cybersecurity ETF is heading towards its biggest weekly gain in three months, more than 4%. Other exchange-traded funds that track the industry, including the Prime Cyber ​​Security ETF ETFMG and the Global X Cybersecurity ETF, are also set for their best weeks since March. Specific stocks such as Cloudflare, CrowdStrike, FireEye Inc. and Zscaler Inc. rose more than 10% in the second week of June.Cybersecurity companies are valuing more than the global index of US ETFs in a month, according to a Bloomberg chart.Source: Bloomberg Recent cyber attacks have made security a priority for the US. In May, President Joe Biden signed an executive order aimed at strengthening cybersecurity, and his infrastructure proposal includes billions of dollars dedicated to improving defenses. The White House's fiscal 2022 budget recommends funds to establish a new cybersecurity office. Amid growing threats of hacking, the cybersecurity industry, like US government spending, booms. Read more:

Click to rate this post!
[Total: 0 Average: 0]
Next Post

Economy: Central Bank increases growth forecast to 4.6%

Subscribe US Now