In a recent update gone wrong, CrowdStrike has suffered a massive blow to its reputation and market valuation. The stock has plummeted by 18%, losing $16.16 billion in market cap. This raises questions about the reliability of centralized cloud-based security solutions in the face of such failures.
Despite this setback, the shift towards localized services from cloud-based solutions seems unlikely due to cost-benefit considerations. Other cybersecurity companies are poised to capitalize on CrowdStrike’s misstep and grab a share of the market. Here are three stocks that could benefit from this situation:
Broadcom
Broadcom has positioned itself as a key player in the AI narrative, outperforming even Taiwan Semiconductor Manufacturing on a one-year timeline. With a diverse portfolio that includes data center solutions and infrastructure software, Broadcom is well-positioned to capitalize on the growing demand for cybersecurity services.
The recent acquisition of VMware has further strengthened Broadcom’s position in the market, with infrastructure software accounting for a significant portion of its revenue. As CrowdStrike faces challenges, Broadcom’s cybersecurity division is expected to step up and fill the gap.
Fortinet
Fortinet offers a hybrid approach to IT security, combining cloud-based and on-premise solutions to provide comprehensive cybersecurity services. Despite a recent drop in stock price, Fortinet’s market position remains strong, with analysts forecasting a potential increase in share value.
With a focus on user engagement and a robust cybersecurity framework, Fortinet is well-equipped to attract clients seeking reliable security solutions in the wake of CrowdStrike’s misstep.
Palo Alto Networks
Palo Alto Networks, another California-based cybersecurity firm, holds a dominant market share in the firewall market. With its AI-powered Prisma Access and Cortex XDR offerings, Palo Alto is well-positioned to provide robust cybersecurity solutions to clients.
Recent earnings reports have shown steady growth for Palo Alto Networks, with a positive outlook for the future. Analysts predict further growth in share value, making Palo Alto a strong contender in the cybersecurity market.
Overall, the recent blunder by CrowdStrike has raised questions about the reliability of centralized cloud-based security solutions. As other cybersecurity companies step in to fill the gap, investors have the opportunity to capitalize on the changing landscape of the cybersecurity market.