Be careful when betting on cybersecurity stocks
Countries are on high alert as the Russia-Ukraine war heightens threats of cyber attacks.

While many are piling into cybersecurity stocks, it’s important to note that if those cybersecurity companies fail to protect organizations from those cyber attacks, their reputation will fall and their clients will leave and do business with other cybersecurity companies.

Revenue growth, balance sheet, and profitability are all important when analyzing cybersecurity stocks. But investors should put a heavy emphasis on the strength of their technology.

Investors definitely don’t want to invest in the next SolarWinds $SWI.
If thats the underlying thesis then best to use cybersec ETFs I reckon. Lowers idiosyncratic risk and diversifies it across the sector. $BUG $CIBR are two good options
Add a comment…
Next
Commonstock is a social network that amplifies the knowledge of the best investors, verified by actual track records for signal over noise. Community members can link their existing brokerage accounts and share their real time portfolio, performance and trades (by percent only, dollar amounts never shared). Commonstock is not a brokerage, but a social layer on top of existing brokerages helping to create more engaged and informed investors.