As data breaches have increased over the past 3 weeks, shares of cyber security companies have surged. The Apple data breach that led to the leaked photos of celebrities and the J.P. Morgan cyber attack are two recent events that have caused an increase in the demand for cyber security companies. As a result of this, investors anticipate an increase in revenue for companies like the Israeli cyber security giant Check Point Software Technologies, causing the stock price to reach a 13 year high of $71.99 on September 5th this year. Smaller cyber security companies like Palo Alto Networks Inc. have also seen a bump in their stock prices in recent months.
Every time Target or Home Depot or a nuclear power plant or even the U.S. government is breached and it’s in the news, that’s a driver for this market,” Brad Curran, an analyst at consulting firm Frost & Sullivan said during a phone interview.
The cyber security market could be the next big market to invest in as cyber attacks continue. J.P. Morgan announced it will spend $250 million annually on cyber security, increasing the revenue stream for this market. As firms continue to allocate large percentages of their annual budgets on cyber security, companies in this industry could be good investments in the long run.
Read more here – “J.P. Morgan-to-Apple Data Scares Spur Israeli Stock’s Surge,” (Gabrielle Coppola, Bloomberg News)
Kyle Burgess is the co-founder of two social enterprises and has worked in strategy, communications, and program management for a decade. Kyle received her Master’s degree in International Relations & Economics from the Johns Hopkins School of Advanced International Studies (SAIS) and her Bachelor's degree in Political Science from American University.