Cybersecurity stocks grow as the Russia-Ukraine war provokes cyberattack anxieties
Key takeaways:
- Cybersecurity stocks were a rare optimistic spot Thursday as Russia's attack on Ukraine sent significant indexes down.
- The dispute has provoked worries of cyberattacks, particularly against critical infrastructure firms.
- Wedbush Securities critic Dan Ives reported in a note on Tuesday that matters of cyberattacks could count 200 to 300 basis points of expansion to the sector.
Cybersecurity shares grew after the Russian Ukrain battle took place:
Cybersecurity stocks were a rare shining spot Thursday as Russia's charge of Ukraine sent significant indexes down.
The dispute has started matters of cyberattacks, especially against vital infrastructure firms. Since the previous week, Ukraine has already undergone two such spells that impacted government websites. The U.S. attributed the first invasion to Russia, which the nation declined, and told the second was constant with Russia's hope.
Amid the rising fear of an escalation in the war, shares of the following cybersecurity firms jumped: Telos, up almost 19%; Palo Alto Networks, up more than 12%; CrowdStrike, up nearly 11%; and Mandiant up practically 10%. Palo Alto Networks had also just reported gains on Wednesday.
Though they were gloomy Thursday morning, the S&P 500 was up nearly 0.5% in the afternoon, and the Nasdaq Composite Index was up almost 2%.
Wedbush Securities analyst Dan Ives wrote in a note on Tuesday that concerns of cyberattacks could add 200 to 300 basis points of growth to the sector, which he said was already poised to increase 20% year-over-year in 2022. A basis point is equal to 0.01%.
"With a very elevated level of cyberattacks now emerging on the horizon, we believe added growth tailwinds for the cybersecurity sector and well-positioned sellers should be a priority sector for tech investors during this market disruption," he noted.