Orwellian dystopia. Even progressive democracies are starting to impose more
and more restrictions, especially on what can be said or written.
Ten years ago, the news that someone would be jailed for a
comment would have been bizarre. This is an unfortunate reality today, not
somewhere in a dictatorship but in the middle of Europe.
The latest developments go even further: earlier this week,
France detained
Telegram founder Pavel Durov in connection with
allegations related to terrorism or arms trafficking.
Immediately, freedom advocates, or so-called libertarians,
including Edward Snowden, called for Durov’s release. But it appears that some
are acting beyond speaking out.
Reports indicate that hackers have carried out DDoS attacks
on several French government websites, including those for government services
and the Medicines Safety Agency.
Even if it was a coincidence, it highlights a growing
trend: cyberattacks are also going to grow due to geopolitical tensions, and
not necessarily direct ones, such as between
Israel and Hezbollah.
Wars and rivalries are no longer confined to physical
battlefields; they are also fought online. This is why important countries now
have specialized cyber units, just like air forces.
Where do we stand now?
There is no need to start stocking up on tinfoil hats just
yet. Instead, it would be a good idea to add cybersecurity stocks to your watch
list, such as Palo Alto, Fortinet, and Check Point.
Given the current landscape, it’s no surprise that these
stocks are up more than 20% each since the beginning of the year, outperforming the S&P 500 and
Nasdaq.
As for whether it’s too late to jump on board, the answer
is it depends. For instance, Cisco Systems and Check Point look more attractive
than Palo Alto and Fortinet when you consider their P/E ratios.
Overall, spending on security still makes up less than 10%
of overall IT budgets despite the high risks of a breach. With Generative AI
expanding the ways cybercriminals can scale their attacks.
The demand for cybersecurity services is expected to
continue growing in the near future. With no one willing to skimp on security,
some companies will likely see significant profit opportunities.
It is worth researching which companies could benefit the
most by researching their products, prospects, and customer base. Otherwise,
there are ETFs focused on cybersecurity companies.
This article was written by FL Contributors at www.forexlive.com.