Our topic about Cybersecurity stocks has seen a sizable sell-off this year, down nearly 18 percent, about the same as the Nasdaq-100. There are many reasons for the sell-off. Firstly, the theme mainly covers high-growth, multi-weight stocks, which are less attractive to investors in an environment of rising interest rates. Furthermore, there are concerns about the US economy with GDP shrinking in the past two quarters. The massive boom in demand seen in the early part of the pandemic as companies’ spending on securing their increasingly dispersed workforce is also likely to ease, impacting businesses. network security company. However, there is probably a good reason to invest in these stocks after the recent drop.
We believe cybersecurity-related spending will remain a top priority for businesses and governments even as the economy continues to weaken. Governments, critical infrastructure and businesses in the US and Europe remain prime targets of state-sponsored cyberattacks, as Russia is likely to retaliate against sanctions imposed by major powers Western countries imposed after Russia’s invasion of Ukraine. Since cyberattacks have the potential to cause significant economic damage, we believe that spending in this sector will only increase in the future. Furthermore, while the trend of remote working may ease, we think that hybrid work settings will remain in place in the future and this means that companies will continue to prioritize remote work. areas such as endpoint protection and cloud security.
In our topic, Okta stock is the worst performer, down nearly 55% so far. On the other hand, Qualys stock is the most active stock, with an increase of about 13% so far.
What if you were looking for a more balanced portfolio instead? Ours High quality investment portfolio and multi-strategy portfolio has consistently beaten the market since late 2016.
Invest with Triple Portfolio beats the market
See it all Triple Estimated price