Bigger and bolder cybersecurity attacks, from JPMorgan Chase to the Sony Entertainment fiasco, are piling up, terrorizing corporations and their customers. People and businesses worldwide are seeking every measure to protect themselves against risk.
Which means booming business for cybersecurity stocks and their investors.
Cybersecurity stocks have been an underinvested tech theme relative to other tech trends, and analysts say it runs counter to the sales opportunity for these companies.
To avoid being a high-profile victim, businesses and government agencies are aggressively scouting out new, next-generation cybersecurity tools made by upstarts like Palo Alto Networks and FireEye. The best news of all is that most companies still have woefully outdated cybersecurity infrastructure. That means the next-gen cybersecurity boom is still in its early innings.
"Some investors have compared it to a Y2K-like spending situation, but the difference here is that it's a Y2K that doesn't end," said Daniel Ives, senior analyst at FBR Capital Markets. "The enterprise and government are throwing billions after this," he said. "It's the nightmare of every CEO to see the headline on the front of the Wall Street Journal that their enterprise was attacked."