It seems like every few months there is a major hack in the news. We do not hear about the everyday hacking that is happening to businesses that are local or to everyday people. As someone who had their identity stolen years ago I now make sure my identity theft protection is paid before I even get food. Businesses likewise are probably willing to set aside an additional 1-2% of their budget for cybersecurity. For those unaware MGM and Caesars online casinos had a hacking situation recently and some ransom (in the millions) was paid. https://qz.com/young-hackers-are-sticking-up-las-vegas-casinos-for-hef-1850837238
I know plenty of white hat hackers (those are the good people – black hats are the bad ones). My friends who are white hat hackers say it is unreal how easy things can be breached. The only solution in their eyes is better cybersecurity. I am not sure why so many cybersecurity stocks (i.e. Cloudflare [NET], Crowdstrike [CRWD], etc) did not continue to run from their highs over the past 24 months. Maybe someone on here would know why that is?
I see the following stocks having a good run over the next 24 months:
1) Endava plc [DAVA]: Earnings very soon, rated a “buy” from sources (https://finviz.com/quote.ashx?t=DAVA&ty=c&p=d&b=1) and is well below its ATH. This company is out of the UK so for those who only want USA stocks be aware.
2) Cloudflare: This stock along with Palo Alto are good long term holds, well past 24 months.
The only thing that could hurt these stocks, since AI is booming and with more AI comes more hacking would be if companies like Salesforce, Microsoft, etc completely form a better cybersecurity set of products than the big name cybersecurity companies do. The one stock I like to swing trade in the cybersecurity field is OKTA, have used it to swing trade recently for an 11% gain and did so back in 2021. Feel like there is plenty of money to be made in cybersecurity stocks.
My current holdings: 31 shares of Cloudflare, 12 shares of Palo Alto, 128 shares of DAVA (swing trade – probably will perform well in upcoming earnings), and exited my position (11) shares of OKTA recently after my gain.
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