We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
In this episode of ETF Spotlight, I speak with Dan Ives, Managing Director at Wedbush Securities and Stephen Gardner, Director of ETF Sales at ETFMG, about cybersecurity stocks.
The war in Ukraine remains front & center on investors’ minds. Many cybersecurity experts have warned about the possibility of cyber retaliation by Russia to crippling financial sanctions imposed by the US and its allies. In fact, cyberattacks have been a part of Russia’s war strategy.
Several cyberattacks in recent years have been linked to Russian entities, including a high-profile ransomware attack on Colonial Pipeline last year. The country has significant cyber capabilities, and the government tolerates cybercrimes against other nations and foreign organizations.
Dan believes the sector, which was already poised to grow 20% year-over-year, could see 200 bps-300 bps of additional growth from the crisis.
Last week, Google (GOOG - Free Report) announced plans to buy cybersecurity firm Mandiant for about $5.4 billion. This would be one of its biggest acquisitions by Google, if completed. The deal could drive further consolidation across the cybersecurity space as Amazon (AMZN - Free Report) and Microsoft (MSFT - Free Report) will be pressured to bolster their cloud platforms.
As our world is becoming increasingly digital and interconnected, the risk of security breaches and threats continues to increase, and we are likely to see increased demand for security products and services.
Image: Bigstock
Why You Should Buy Cybersecurity Stocks & ETFs Now
In this episode of ETF Spotlight, I speak with Dan Ives, Managing Director at Wedbush Securities and Stephen Gardner, Director of ETF Sales at ETFMG, about cybersecurity stocks.
The war in Ukraine remains front & center on investors’ minds. Many cybersecurity experts have warned about the possibility of cyber retaliation by Russia to crippling financial sanctions imposed by the US and its allies. In fact, cyberattacks have been a part of Russia’s war strategy.
Several cyberattacks in recent years have been linked to Russian entities, including a high-profile ransomware attack on Colonial Pipeline last year. The country has significant cyber capabilities, and the government tolerates cybercrimes against other nations and foreign organizations.
Dan believes the sector, which was already poised to grow 20% year-over-year, could see 200 bps-300 bps of additional growth from the crisis.
Last week, Google (GOOG - Free Report) announced plans to buy cybersecurity firm Mandiant for about $5.4 billion. This would be one of its biggest acquisitions by Google, if completed. The deal could drive further consolidation across the cybersecurity space as Amazon (AMZN - Free Report) and Microsoft (MSFT - Free Report) will be pressured to bolster their cloud platforms.
As our world is becoming increasingly digital and interconnected, the risk of security breaches and threats continues to increase, and we are likely to see increased demand for security products and services.
Dan’s favorite stock in the sector are Palo Alto Networks (PANW - Free Report) , Zscaler (ZS - Free Report) , CrowdStrike (CRWD - Free Report) CyberArk Software (CYBR - Free Report) , Tenable (TENB - Free Report) and Check Point Software (CHKP - Free Report) . We also discuss the outlook for broader tech.
The ETFMG Prime Cyber Security ETF (HACK - Free Report) invests in companies actively involved in providing cybersecurity technology and services.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.