Cyber security is a collection of new technologies, solutions and practical processes put in place to provide more protection for computer devices and data. The idea is to develop and test all the solutions that can limit the success of cyber attacks, computer threats that have greatly increased during the period of the pandemic.
Between companies forced to digitize their services and those who now work remotely, significant budgets are allocated to ensure cybersecurity. In turn, there is a strong demand for data protection solutions among successful companies in this sector who are seeing their share prices explode. According to a survey of IT security professionals around the world, the increase in cyber attacks since the COVID-19 pandemic has mostly been observed in the area of data exfiltration and leakage.
McAfee’s Dazzling Rise During The Pandemic
The constant need of companies for new data protection solutions makes cybersecurity a booming industry. This strong demand for solutions and the revenues recorded by companies that are experts in IT security mean that more and more investors wish to invest in the sector. In 2019, the global annual security software revenue reached US $ 43.2 billion, representing an important segment of the global information security market, which itself achieved revenue of US $ 121 billion. US dollars in 2019.
As one of the companies offering IT protection solutions, McAcfee has experienced a meteoric rise during the pandemic period. Maxim Manturov, head of investment research at Freedom Finance Europe, was particularly interested in the case of this company. He said, “McAfee (MCFE) is a cybersecurity company that provides protection from devices to the cloud. It is well known for its digital security products for individuals. In early August, McAfee released its results for the second quarter of 2021. Revenue was $ 467 million, up 22% year-on-year. Net income rose sharply to $ 108 million from $ 22 million in the prior period. Earnings per diluted share amounted to 21 cents. Cash and cash equivalents at the end of the quarter was $ 420 million. ”
His analysis goes on to say: “Chief Executive Officer Peter Leve said: Not only did McAfee have another strong quarter with double-digit growth in revenue, DTC subscribers, profitability and cash flow from operations, but also closed the sale of the business. Business ”.
“The impressive quarterly results were driven by a significant increase in the number of new customers. Some 556,000 new subscribers have joined the ranks, up 17% from a year ago, reaching 19.4 million at the end of the quarter. In addition, the company recently entered into a new partnership with Visa to provide security solutions to Visa Business cardholders. Almost a third of the data breaches in the past year involved small businesses. With increasing threats underscoring the need for small businesses to protect their digital assets, McAfee seeks to capitalize on this increase in demand. The average target price is $ 29.8 (growth potential is over 36.5%). ”
As telecommuting continues, McAfee will see its stock numbers increase as long as the solutions it offers reassure its users.
The Rising CrowdStrike Price
According to the IDC (the International Data Corporation), a total of more than $ 151 billion would be invested by 2023 globally to meet spending on cybersecurity equipment and solutions. This is a testament to the importance placed on cybersecurity and why more and more investors want to invest in the stocks of the best performing cybersecurity companies.
CrowdStrike is also another American structure, even the first endpoint security platform native to the cloud. The peculiarity of this structure is that it uses artificial intelligence and conducts cyber intelligence to prevent cyber attacks. The company is indeed much adored for the quality of its services, its state-of-the-art tools and the protection of its customers’ data, which is well assured.
Investors are therefore necessarily interested in its shares, the price of which has continued to increase during the pandemic. For example, CrowdStrike’s market value was $ 49.44 in January 2020 before rising in September 2020 to $ 137.43. As of 2021, the price of this company is currently $ 284.30.
L’ETF Wisdom Tree Cybersecurity
Finally, on the European ETF side, strong performances were also recorded. For example, the Wisdom Tree Cybersecurity ETF had a weekly return of + 7.04% in terms of performance at the beginning of June 2021. ETFs (Exchange Traded Funds) indeed represent an easy solution for making investments. These investment funds make it possible to trace the performance or rather replicate those of a particular market index such as that of cybersecurity.