Top 10 Cybersecurity Stocks In 2023

Cybersecurity is the protection of data, applications, networks, and devices from unauthorized access and malicious attacks. It can be broken down into several different components: network security, application security, data security, endpoint security, cloud security, and Internet of Things (IoT) security.

Network security protects the integrity and availability of data, applications, and networks, while application security focuses on protecting the applications themselves from attacks. Data security ensures that data is not accessible to unauthorized persons or modified in any unauthorized way, and endpoint security focuses on protecting the devices and systems used to access data or applications. Cloud security focuses on protecting cloud-based services and applications, and IoT security is the protection of the Internet of Things (IoT) from malicious actors.

We’ve seen how quickly our lives have changed to the point where almost all our information has been digitized. Our banking details, identity, location and other vital info is now all stored electronically, which leaves it vulnerable to attacks.

Investing in cyber-security stocks allows investors to take advantage of the growing need for cybersecurity that arose from this rapid digitalisation of our information, by investing in companies that specialize in developing and providing cyber-security solutions. There are a lot of players in this fragmented field, and investors may expect some consolidation via M&A and success stories in the future.

A survey by McKinsey & Co found that companies globally spent around US$150 billion in 2021 on cybersecurity, which is expected to grow by 12.4% per year. The growing sophistication of cyberattacks is alarming and causing a skyrocketing annualized cybercrime cost of over US$8 trillion, with a 38% increase in worldwide attacks last year compared to 2021.

Additionally, many investors view cyber-security stocks as a way to diversify their portfolios, since the industry is largely disconnected from traditional markets.