Shares in cyber security companies climbed rapidly on Friday as investors bet that a spate of cyber attack disclosures from entities like Microsoft Corp would boost demand for security technology.
Shares in FireEye Inc, Palo Alto Networks and Crowdstrike Holdings all raced ahead after Microsoft said on Thursday that it found malicious software in its systems associated with a huge hacking campaign disclosed by U.S. officials in the week , adding the software giant to a growing list of attacked government agencies.
Microsoft may be a user of Orion, the widely deployed networking management software from SolarWinds Corp which was utilized in the suspected Russian attacks on vital U.S. agencies and others.
“This news increases the notice with regard to the federal government’s susceptibility to cyber attacks from Russia and other foreign entities,” said Morgan , portfolio manager at Synovus Trust in Atlanta.
Morgan added that technology security companies “all seemed to enjoy a rise in spending and awareness” he expects will happen because the U.S. government looks to prevent future hacks.
FireEye’s shares were last up 25.1% at $17.99, their highest point since January, and on target for his or her biggest one-day percentage gain since January 2014.
The stock had tumbled below $14 on Dec. 9 after FireEye became the primary organization to disclose an attack associated with the recent hacking campaign.
Friday’s specialize in cyber stocks also sent shares of Crowdstrike up 9.7% and shares of Palo Alto up 7.1%. Shares of Zscaler, another security firm, rose 4.8%.
Wedbush analyst Daniel Ives wrote during a research note that the recent attacks could rank among the worst ever and highlight an outsized marketplace for cyber security products.
