The ransomware epidemic is becoming a way larger problem for the U.S. government than we were previously expecting. Ever since the news of the Colonial Pipeline hack, more and more ransomware attacks are surfacing, targeting a number of industries. An attack on the U.S. branch of the world’s largest meat-packing company, JBS (OTCMKTS:JBSAY), saw $11 million paid out to a hacking group. Now, EA (NASDAQ:EA) is having source code held hostage by a hacking outfit. Naturally, cybersecurity companies like CrowdStrike (NASDAQ:CRWD) stock is becoming highly sought after.
Today, a Senate committee grilled FBI Director Christopher Wray. The hearing was meant to address a number of security issues facing the country, including the events at the Capitol on Jan. 6. However, the crypto ransomware attacks are becoming a central component of these talks.
Wray’s opening statement to the committee made brief note of ransomware attacks and their increasing frequency. He then said during questioning that the “cyber threat is increasing almost exponentially,” alluding to the crypto ransoms being taken in the last couple of weeks.
CRWD Stock: Investors Flock to Popular Cybersecurity Plays
CrowdStrike is a cybersecurity firm that is picking up a lot of steam among investors as a result of this slew of hacks. Notably, the company is offering three brand new ransomware protection products to combat the epidemic of cyber attacks.
In the vast number of cybersecurity names that are cropping up as investors look to cash in on the issue, CrowdStrike is standing out. Analysts are naming it among the top security plays. The company is dazzling investors in the last week with its impressive earnings report. It is flexing a 400% EPS increase in Q1, and a 70% climb in year-over-year revenue.
Reddit chatter is taking off, if only mildly, around CRWD, thanks to its large free cash flow and decent percentage of float being sold short, at 6.5%. Of course, it’s always good to have mobilized retail traders ready to rally around your stock these days.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.