Today’s turmoil in equity markets has provided unique price action for various sectors. In particular, cybersecurity stocks are one of the groups that have seen the most positive movement today, aside from defense picks. CrowdStrike (NASDAQ:CRWD), Palantir (NYSE:PLTR) and Fortinet (NASDAQ:FTNT) have each seen gains of more than 10% as investors flock to companies that may benefit from the ongoing Russia-Ukraine conflict.
Right now, concerns that cybersecurity attacks could pick up have prompted gains across the sector. However, should we see a significant uptick in such attacks, investors in these aforementioned companies could see particularly outsized gains.
At a time like this, investors are looking for anything positive. Let’s dive into why these cybersecurity companies are taking off today.
Russia-Ukraine Conflcit Sends Cybersecurity Stocks Surging
As mentioned, the threat of more cybersecurity attacks is enough to increase investor interest in this sector. However, reports that “hundreds” of Ukrainian computers have been infected with destructive software has some investors considering the idea that a cybersecurity assault is already underway.
Reportedly, this attack has probably been in the works for months. But the threat of widespread international cyber attacks is something U.S. investors are taking seriously.
Today, President Joe Biden announced sweeping sanctions against Russia. In his address, Biden also noted previous cybersecurity attacks and suggested any such action would be met quickly. Accordingly, the market appears to be interpreting this rhetoric seriously as well.
Some suggest this could be the “best time” to invest in cybersecurity stocks in a long time. Others say these risks have been here all along. However, what’s clear is that this period of uncertainty may be here to stay. As such, investors have real reason to dive into the sector right now.
On the date of publication, Chris MacDonald did not hold (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.