Cyber security stocks
What is your view on the cyber security sector in the next 3-5 years. A follow up question, would Crowdstrike, Palo Alto and Broadcom be your preferred stock in this sector? Is any one of these a better quality than the others?
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Answer
Hi Scott,
Cyber security is a huge rapidly evolving space in the tech sector, a bit like AI without the steroids. We believe its a huge growth area but opportunities on the ASX are thin on the growth with $625mn Qoria (QOR), who develop cyber safety tools aimed at protecting children, used by over 29,000 schools across three continents, serving more than 25 million children, the most recognised locally.
Alternatively investors seeking diversified exposure to the global cybersecurity sector, ETFs such as the ASX traded BetaShares Global Cybersecurity ETF (HACK) and the Global X Cybersecurity ETF (BUGG) are available. These ETFs aim to track the performance of leading companies in the global cybersecurity industry.
- Due to the huge volatility in the sector we prefer ETF’s over the likes of Crowdstrike (CRWD US), Palo Alto (PANW US) and Broadcom (AVGO US) – CRWD basically halved in July’24 before making fresh highs this year.
