Is There Any Question Now About Owning Cybersecurity Stocks? | #hacking | #cybersecurity | #infosec | #comptia | #pentest | #ransomware

* The SEC getting “compromised” is a great proof point for our CIBR shares

* AI is driving a slew of product announcements, which are potential cyber attack points

* We continue to think all investors should have exposure to cybersecurity in the portfolio 

As you’ve probably heard by now, yesterday the Securities and Exchange Commission (SEC) experienced a “cybersecurity incident” when its X account was compromised and a fake post claiming that the agency green-lit plans for a spot-Bitcoin ETF, which fueled a brief surge in the price of Bitcoin.

The commission soon followed up with a subsequent post walking back the claim providing BTC holders with some unusual intraday volatility. BTC ended the day down 2.03%. For those keeping score, this is the second time the SEC has been compromised, and it’s fair to label this latest breach a high-profile one that serves as a reminder of the growing importance of cybersecurity.

It also reinforces our view that all investors should have exposure to cybersecurity, which we have through the First Trust Nasdaq Cybersecurity ETF (CIBR) shares. 

As we move through the December quarter earnings season, in addition to revenue guidance put forth by CIBR’s holdings, we’ll also be digging into deferred revenue dynamics as well as their percentage of recurring revenue. These figures will offer another dimension to revenue prospects in the coming quarters, especially if a company only guides for the current quarter. 

One other thought on AI, which as expected is driving much attention at CES 2024. So far, we’ve learned of AI-enabled smartphones, PCs, TVs, robots, appliances, kitchen gadgets, and even personal care products. Many of these connected devices will hit shelves later this year.

While that bodes very well for connected chip demand, including that for Action Alerts PLUS names Qualcomm (QCOM) and Marvell (MRVL) , much like the adoption of IoT, it adds another layer of potentially vulnerable points for cyber attackers. As an investor, that continued expansion bodes extremely well for continued growth in not only cybersecurity but also data privacy spending.


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National Cyber Security