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Hackers Fighters: What Happened to Cyber ​​Stocks? - Walla! Of money

2021-11-11T12:20:00.900Z


The acceleration of the transition of many companies to storage and use of the cloud, has greatly increased the cyber attacks and as a result, the value of the shares of the cyber companies


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Hackers Fighters: What Happened to Cyber ​​Stocks?

The table does not lie: Accelerating the transition of many companies to cloud storage and use has greatly increased cyber attacks.

As a result, the value of shares in cyber defense companies skyrocketed, including quite a few Israeli "unicorns."

Who is leading the world market and no less important - how long will the celebration last?

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  • Cyber

  • stock

  • Wall Street

  • Unicorn

  • Check Point

Roast Greenberg

Wednesday, 10 November 2021, 16:38 Updated: Thursday, 11 November 2021, 14:10

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The tsunami of cyber attacks on the cloud and digital services of companies and governments around the world have led to thefts, but also without a few smiles from investors. For while the hackers deployed baits for virtual victim fishing, investors in cyber companies trying to prevent the attacks raised tens of percent return on their net as a result of a sharp rise in the value of the companies.



Although the corona year accelerated the view of cyber as a mandatory tool in every organization, it is clear that in 2021, solutions broke out in the field in light of the transition of companies to storage and use of the 'cloud'.



According to the American Identity Theft Resource Center (ITRC), the number of security breaches reported so far this year has already exceeded their number in 2020, putting 2021 on track to become a record year in cyber attacks.



All of these have boosted the value of the global cyber market by tens of percent, currently estimated at about $ 150 billion.



Among the new unicorns can also be found the Israeliness: Cato Networks, which operates in the field of cloud security and last October raised about $ 200 million at an estimated company value of about $ 2.5 billion.

And 'Cybereason', which develops a system for collecting information from the organization's systems and last July raised about $ 275 million at an estimated company value of about $ 3 billion.

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The five largest cyber companies in the world (Photo: image processing, without)

The increases also boosted the shares of the five largest cyber companies currently traded on Wall Street USA (see table). All five rose by an average of 98% from the beginning of the year until last Monday, with the highest return being recorded by Cloudflare. The American company, which jumped 182% for the period under review.



'Cloud Player' leads the DDOS (denial of service attack) market in a cloud environment, and is traded on the US NASDAQ stock exchange worth $ 66 billion. The table - 'Crowdstrike', which leads in the security of end devices in the cloud and is also traded on the Nasdaq at a value of about $ 65 billion, after rising 41% since the beginning of the year.



The results of the third quarter of 'Cloud Player' will fuel its rise further, after growing by 51% compared to the corresponding quarter last year, to $ 172 million.



The company, however, continues to lose money - $ 107 million in the third quarter, which is about 80% of gross profit, while in the corresponding quarter last year the net loss was 30% of gross profit (it should be noted that about $ 72 million of that loss is due Debt reduction, when the company still has about $ 1.8 billion, as of the end of the third quarter of the year, in cash and cash equivalents, to subsidize the net loss).

The cyber defense bull is galloping down Wall Street, the question is until when?

(Photo: ShutterStock)

"Cloudflare Network," explains

Pedro Flanders, a technology and cyber analyst at US investment house GlobalX

, "can reach 95% of the world's population within 50 milliseconds, in 250 cities located in more than 100 countries, including China.



It works. On a digital infrastructure consisting of developers, enterprise architects, IT security and network administrators, and is a provider of technology giants such as Hubspot, Lendingtree, IBM, Shopify, Doordash, Garmin etc. The



company also publishes a quarterly report called: DDoS Attack Trends, which summarizes the attacks DDoS around the world, segmented by location, maintains its superiority as end-to-end network services have become more important as more and more companies rely on cloud computing services.



"All of this is joined by its expectations for 2022, in which it predicts that the market to which it is focused will grow to about $ 86 billion - an increase from a market of about $ 72 billion by 2020."



Another company recorded higher return for that period is, Fortinet (Fortinet), which specializes in securing networks and jumped approximately -141% this year, directly to the value of $ 56 billion - which was traded on the Nasdaq on Monday.



Revenue ' Fortint jumped 33% in the last quarter and stood at $ 867.2 million, and 29% in the first 9 months of 2021. During the period, the revenue was about $ 2.37 billion.The company's net profit was $ 163.1 million for the third quarter and $ 407.8 million per For the first nine months of the year, an increase of 32% and 19% respectively.



Fortinet distinguishes between organizations and SMBs. Organizations are offered network security, cloud security, security operations, zero access and security as a service, while SMBs are offered cyber security SMB, a secure office network, endpoint and remote user protection, and secure cloud applications.



"Fortint also expects greater market opportunities in network and infrastructure security," Flandrini adds, "about $ 48 billion. All this along with a market of about $ 24 billion in endpoint security, and $ 19 billion in cloud security.



Fortint's main growth engine is a proprietary technology into new markets, and the company recently announced the FortiTrust - security service that offers a license based users across all networks, endpoints and clouds.



processors security (SPUs) of Fortinet increase radically the speed, scale, efficiency and value of its solutions, while a significant improvement experience User, footprint reduction and vendor requirements. "

Nir Tzuk has a reason to smile: Palo Alto overtook Check Point, which he slammed into a door (Photo: Palo Alto Networks)

In the cliff of times

The second from the bottom of the table is none other than Palo Alto, which arose after the relationship between Nir Tzuk, one of Check Point's first employees, and Gil Schweid, the CEO, ran aground.



Tzuk is one of the founders of Palo Alto, which became a competitor At the end of June 2015, it even celebrated the last value diversion for the first time since Palo Alto began trading on the NASDAQ ($ 15.4 billion worth of Palo Alto at the time, compared to $ 15.3 billion per check). Point '). Since then the gap has only grown.



"Check Point is no longer in the big leagues," says Sergei Vaschonok, a senior analyst at Oppenheimer Investment House. Check Point - $ 19.5 billion.



The most successful companies in cyber today are the ones operating in the pure cloud market - a market that is still relatively small, but should grow rapidly at the expense of the traditional on-premise market. And this is also one of the problems of Checkpoint, which operates mainly on-premise.



The main risk for these companies is precisely the global growth, which will benefit many companies, and thus investors' money can move from these shares to other companies, smaller and less quality, but cheaper.



"The big advantage of the cyber field is that it does not have a single dominant player - Microsoft," says Vaschonok, "who could, so to speak, serve as a top player in the cyber field, but does not do so for now. This, by the way, even though many cyber companies" celebrate "About security breaches in its Windows software."



Despite breaking the recent value records of listed and private companies and the growth of the field, it is clear that there is an understanding among investors that there is no room for the large number of companies in the field, and that only some will stand the test of time.



Until that happens - we will probably continue to watch huge fundraisers alongside billions of dollars pricing companies, and in the opinion of capital market officials, if there is no disruption in the roadmap set by the cyber companies for 2022, we are not expected to see declines in the field or companies in the coming year.

"The table does not lie" with the review of cyber shares, also published in the Maariv Business Supplement, Fri. 12.11

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Source: walla

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