Cybersecurity risks ramp us; Palo Alto Networks delivers strong earnings – The Average Joe
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    Cybersecurity risks ramp us; Palo Alto Networks delivers strong earnings

    victorlei

    February 23, 2022

    Yesterday, Ukraine confirmed attacks on its government and bank websites — and security experts are worried the US could be the next target…

    What’s the big deal? So far, known cybersecurity attacks have been against Ukraine, but US sanctions on Russia could provoke cyberattacks on the US.

    Jim Langevin, a senior member of the House Armed Services Committee, is preparing for retaliation from Russia (via WSJ):

    • He’s taking an “all hands on deck approach” to prepare for cybersecurity attacks.
    • Urging companies to patch vulnerabilities, put in multifactor authentication and update software.

    Cybersecurity stocks pulled back alongside the broader market in recent months — but earnings show strong demand among large enterprise customers…

    Well-timed earnings: On Tuesday, Palo Alto Networks (NASDAQ:PANW) — a provider of advanced cybersecurity solutions including advanced firewalls — reported strong earnings — briefly sending its stock up 6% before finishing the day flat (thanks Russia):

    • $1.3B in sales — up 30% from last year; $1.74 earnings per share — both above expectations.
    • Signed 221 deals over $1M in the last quarter and gave forward projections above estimates.

    PANW’s metrics were firing on all cylinders — its CEO anticipating “strong cybersecurity demand” and organizations preparing for a “hybrid work” environment.

    9 picks: Alongside PANW, Dan Ives of Wedbush lists other names likely to benefit from attacks (via Barrons):

    More industries, including logistics, are moving operations online — increasing vulnerability to attacks. On Sunday, Expeditors, a Seattle-based shipping and logistics company, was hit with a cyberattack that shutting down its operating systems.

    With 360 ports and 3,500 maritime facilities responsible for of US GDP, the importance of cybersecurity is only increasing.

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