yber security stocks are currently the hottest sector, as computer network data breaches have moved beyond mischievous hackers and have become large organized operations that target companies and governments. Hardly a week goes by without another headline grabbing computer network breach being reported that results in the loss of data and security concerns. This is causing a lot of money to flow to cyber security companies, providing a nice boost to cyber security stocks.
Wall Street has taken notice of companies that provide computer and network security services by bidding up the shares of cyber security companies. While many of the stocks in this hot sector have rallied nicely in recent years, there is a still a lot of money that will be dedicated to cyber security for years to come, which means explosive revenue and potentially earnings increases for cyber security stocks. Anyone who knows anything about investing or trading the stock market understands that companies with explosive revenue and earnings are likely to be stock market leaders.
Cyber Security Stocks Are Just Starting To Soar
Not only are these companies poised to rake in the revenue and earnings, as tremendous resources are dedicated to protect against cyber security threats. Cyber security companies are also potential takeover topics. As the technology sector has matured, large technology companies are having trouble continue their high growth rates that made them famous and made their stocks soar. Cyber security is definitely a sector that provides a lot of potential future growth in the high technology arena. It is likely that some of the fastest growing cyber security companies will be taken over sooner or later, especially if one cyber security stock is bought out. There could be a mad rush and bidding war for cyber security stocks by technology companies not wanting to miss out on the next technology high growth area.
Why All The Optimism About Cyber Security Stocks?
Why are so many analysts so optimistic about cyber security stocks? Computer networks have been neglected over the years, and cyber criminals are increasingly taking advantage of the often easy access to supposedly secure computer networks and databases. Whether they are coming from criminal enterprises or unfriendly governments or just solo hackers, cyber hacks on computer networks and databases are increasing and hitting the public consciousness. In response, huge resources are going into cyber security, which is boosting the fortunes of cyber security stocks.
One of the most recent cyber security attacks involved the stealing of millions of federal employee’s data on United States government computer networks. Many suspect this attack was orchestrated by China for unknown reasons. Even before this latest computer hack, President Barack Obama proposed $14 billion for cyber security to protect United States government computer networks and databases. While that request may have seemed unlikely to be filled earlier in the year, it now seems very likely to be approved by Congress, with perhaps more funding, in the wake of the headline grabbing cyber attack that stole employee data from the United States government.
During 2015, governments and companies are expected to spend more than $95 billion on cyber security by public and private organizations seeking to protect their data and computer networks from cyber criminals. This is just the beginning of the ramp up in cyber security spending. Analysts that follow the cyber security sector estimate that by 2019 cyber security spending will increase significantly to more than $155 billion. That estimate might actually be low, since the wave of cyber security attacks appears to be getting bigger over time, which may prompt even more money to be spent on cyber security by reluctant companies and governments.