- CNBC’s Jim Cramer said he sees a bull market in cybersecurity, pointing to names like Palo Alto Networks, CrowdStrike, Okta and Zscaler.
- “You always want to buy stocks of companies in industries where there is intense demand,” Cramer said. “The hack series has made it clear that you either pay a king’s ransom to the bad guys or see your profits slaughtered.”
Despite recent market weakness in many sectors, CNBC’s Jim Cramer said he sees a bull market in cybersecurity.
“You always want to buy stocks of companies in industries where there is intense demand,” Cramer said. “The hack series has made it clear that you either pay a king’s ransom to the bad guys, or see your profits slaughtered.”
Cramer pointed to recent high-profile security breaches that came to light after the US Securities and Exchange Commission ruled that companies had four days to disclose the breach, which demonstrated the widespread nature of the problem. MGM, Caesars, Johnson Controls, and Clorox have all faced hacks recently. Kramer noted that Clorox made huge profits due to processing delays and product outages.
To Cramer, cybersecurity companies like Palo Alto Networks, CrowdStrike, Okta and Zscaler could be valuable to companies willing to pay premium prices to protect against hackers.
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Disclaimer The CNBC Investing Club Charitable Trust owns shares of Palo Alto Networks.
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