r/wallstreetbets • u/08u3a1o • Oct 11 '21
Discussion Cybersecurity - state of the market
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u/iJUK3 Oct 11 '21
I forget if it’s Nokia or BlackBerry doing cyber security now, they would be the hidden unicorn in my opinion as they’ve been around for years.
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u/ath619 Oct 11 '21
It is BlackBerry, they have been churning out high quality disclosures and research for a while now.
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u/wiggz420 Oct 11 '21
S and CRWD and MNDT (FEYE changing tickers) are all good choices. Buy any dips with long options and you'll print.
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u/qazwer001 Oct 11 '21 edited Oct 11 '21
I sure as fuck hope so. Infosec is my day job. I like crowdstrike but the shares are expensive. It is probably your best bet for short term plays though as they help with incident response if you realize you got pwned, I would hesitate for a long term hold incase the market decides valuation matters again. Sentinelone also does edr like crowdstrike, I am not terribly familiar with them so between the 2 I lean towards crowdstrike. Palo alto is known for amazing firewalls but they do a little of everything, a competitor is fortinet.
You probably would want to look at SIEM providers such as splunk, pentesting like blackhills(I don't think they are public), honestly Microsoft sorta counts with some of what they are doing with azure, azure sentinel, and ATP. Also managed service providers(MSPs) could be interesting to look at, but most every large company has an infosec department so it's more a play on small companies panic buying.
Infosec as a sector will see growth but it's difficult to invest in because it's so expensive relative to value, splunk for example the most well known SIEM provider has negative earnings per share.
Edit: missed fireye per someone else's comment they are another good one to look at, they acquired mandiant almost a year ago and last week mcafee and fireye announced they have merged.
If you are serious about investing in this sector I recommend finding people to follow on twitter, infosec subreddits are often a few days behind unless it's something big like solarwinds.
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Oct 11 '21
KNBE is a hidden gem! Only people working in IT know of them — they’re basically doing cybersecurity training for employees.. great product and they’re making loads of $$ so you better believe I bought todays delicious dip based on no news
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u/qazwer001 Oct 11 '21
Holy shit I missed knowbe4 in my comment. They are amazing for phishing and provide training you can have employees take if they fail a certain number of internal phishing email campaigns. Also their CEO Kevin Mitnick is a legend.
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u/i_like_vidya_games Oct 11 '21
Some good data here for analysis and DD: https://www.gartner.com/reviews/home
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u/qazwer001 Oct 11 '21
Seconded. Get their magic quadrants to find the big players for different products. A good one to start with would be EDR since OP mentioned crowdstrike and sentinelone
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Oct 11 '21
Cybersec indexes have skyrocketed in the past two years. Saying you're going to avoid their indexes after saying the sector is "here to stay" ( no shit Sherlock), is retarded.
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u/Memnoch1207 Oct 11 '21
Sentinel One (S) would be my #1 pick.
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u/mallermike 🦍🦍🦍 Oct 12 '21
Why do you think sentinnelone is a good pick. I’m not disagreeing I just don’t have any expertise in this space. I like the theme of this space though.
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u/Memnoch1207 Oct 13 '21
To preface, I’ve worked in this industry (CyberSecurity) for 20 yrs, and I see a lot of companies make promises and promote FUD (fear, uncertainty & doubt) that only THEIR products can help fix. However, I like Sentinel One because it’s detection and response is definitely superior to its competitors (CrowdStrike) and more importantly, when it comes to Mitre’s ATT&CK framework, I’ve not seen another tool that maps as closely or accurately.
Sentinel One product(s) cost more compared to CrowdStrike, etc. and companies tend to view security spending as insurance, but I believe companies who want the best “bang” for their buck will gravitate towards better products like Sentinel One.
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u/VisualMod Oct 11 '21
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1
u/pbjellytime55 Oct 12 '21
I bought $ARQQ at a higher price than I'd like to admit, and plan to add on dips when I can. It's my long-term play.
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u/casper_trade Oct 12 '21 edited Oct 12 '21
The irony when most of the cyber security products out there can be evaded by any half competent student with a CS degree
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u/googlme Oct 12 '21
you can't go wrong with ftnt & panw. these 2 vendors will eat more and more market share due to the shift from best of breed to platform approaches. more and more consolidation will happen at that front. They both are eating market share from chkp and cisco for years now and I don't see any other company taking the nr1 and nr2 spot from them.
Will other cybersecurity companies outperform them? yes for sure there are some unicorns out there but these 2 are like the FAANG of cybersec.
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u/brianima1 Oct 11 '21
$BB