Insurance
Home›Insurance›Industry & Deals›Cybersecurity stocks surge after AI-related cyberattac…
Cybersecurity stocks surge after AI-related cyberattack fears
Goldman Sachs data shows a cybersecurity-stock basket has more than doubled since April 10, though the basket fell more than 1% as tech sold off.
Shares of cybersecurity companies have jumped in recent months as investors bet that cutting-edge AI models will increase demand for security products. Insurance Journal reports that the rally includes a Goldman Sachs basket of cybersecurity stocks that more than doubled since it hit a low on April 10, after Anthropic restricted the release of its Mythos AI model over concerns it could power cyberattacks.
Insurance Journal says CrowdStrike Holdings, Palo Alto Networks, and Fortinet have each gained more than 130% since April 10, and that they have landed among the top S&P 500 performers over the span. The same article notes that the Goldman basket closed at a record high on Wednesday before falling more than 1% on Thursday during a broader selloff across the tech sector.
The rapid run has also pushed valuation levels higher, according to data cited by Insurance Journal. CrowdStrike is priced at more than 170 times estimated earnings, Palo Alto Networks trades at 91 times projected profit over the next 12 months, and Fortinet’s multiple is 48, the article says.
Latest closeS&P 500 7,675.92 ▼0.4%