It seems that every time you read the news these days, another cyber attack has taken place.
With EA becoming the latest victim of this modern threat, investors have got an eye on one solution in particular.
Cyberattacks are on the rise. Last month's Colonial Pipeline attack was followed by another on the U.S. branch of the world's largest meat-packing company, JBS -- who paid the $11 million ransom -- the Irish public health service, and gaming giant EA.
It was the latter, which was confirmed last week, that appears to be the catalyst behind renewed investor interest in cybersecurity stocks.
Luckily for CrowdStrike, it's got three brand new ransomware protection products to combat the epidemic of cyberattacks -- putting it front and center for investors.
What makes it stand out amid so much cyber-strife though? Well, it is being specifically picked out by analysts as the top play in the industry. Following an impressive Q1 earnings report a couple of weeks back, CrowdStrike highlighted its growth momentum with a 400% EPS increase year-over-year and a 70% jump in revenue.
Even the retail investors on Reddit are showing increasing interest in the stock, although not in the form of a short-squeeze, thankfully, as CRWD has a reasonably low short interest ratio of roughly 6%.
So, despite the obvious concern of cyberattacks to the rest of us, it's a blessing to CrowdStrike which is suddenly the belle of the Wall Street ball. As global cybersecurity spend speeds towards $250 billion annually, CRWS is poised to become a market leader.
Plus, it never hurts to have a band of Reddit-fueled retail investors rallying around you these days. To find out more about our thoughts on cybersecurity stocks, listen to our recent Stock Club podcast episode.
MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here.
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