Malicious attacks on websites have been surging, posing a significant threat to businesses. However, this uptick in cybercrime may provide a boost to companies specializing in cybersecurity.
Google, the popular search engine owned by Alphabet (GOOGL), recently disclosed that it is currently grappling with one of the largest online attacks ever recorded. This attack, which is seven times larger than the previous one, is known as a distributed denial of service (DDoS) attack. The hackers behind this assault inundate a targeted website with an overwhelming volume of information requests, aiming to incapacitate the website and force its shutdown. Google confirmed that the attack began in August and is still ongoing. Other prominent companies, such as Amazon (AMZN) and Cloudflare (NET), have also fallen victim to similar attacks.
While Google did not provide detailed motives for these assaults, they could be driven by a desire to sow chaos and confusion. Cybercriminals might also resort to ransom demands as a way to halt the attacks and prevent further disruption to their targets’ operations.
It is not just large tech giants that are being targeted by such attacks. Casino operators like MGM Resorts (MGM) and Caesars Entertainment (CZR) have recently reported cyberattacks against their systems. Even companies like Clorox (CLX), a cleaning products manufacturer, have not been spared. Clorox issued a warning last month that its earnings would be negatively affected due to a cyberattack that caused damage to its IT infrastructure.
As these security threats persist, the cybersecurity sector is poised to benefit, with many industry leaders already experiencing considerable success this year. Palo Alto Networks (PANW), for example, has seen an 86% increase in its stock value since the beginning of the year and is up by 0.1% in premarket trading on Thursday. Okta (OKTA) has also demonstrated significant growth, with a 29% increase since January 1st. Zscaler (ZS) and Crowdstrike (CRWD) have similarly seen their stock values rise by 55% and 79% respectively.
In conclusion, the escalating cybersecurity threats faced by businesses present an opportunity for industry leaders to thrive. These companies play a crucial role in safeguarding against online attacks and are likely to see continued growth as the need for robust cybersecurity solutions intensifies.