- 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 in companies in industries where demand is greatest,” Cramer said. “The hackers’ litany has made it clear that you either pay the bad guys a king’s ransom or see your earnings slaughtered.”
Despite recent market weakness across several sectors, CNBC’s Jim Cramer said he sees a bull market in cybersecurity.
“You always want to buy stocks in companies in industries where demand is greatest,” Cramer said. “The hackers’ litany has made it clear that you either pay the bad guys a king’s ransom or see your earnings slaughtered.”
Cramer pointed to recent major security breaches that came to light after the U.S. Securities and Exchange Commission ruled that companies have four days to disclose a hack, highlighting the widespread nature of the problem. MGM, Caesars, Johnson Controls and Clorox have recently faced hacker attacks. Cramer said Clorox suffered a huge drop in profits due to processing delays and product failures.
For Cramer, cybersecurity companies like Palo Alto Networks, CrowdStrike, Okta and Zscaler could be very valuable to companies willing to pay high prices for protection from hackers.
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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Palo Alto Networks.