Security Stocks Eye Best Week in Months as List of Hacks Grows | #cybersecurity | #cyberattack

Shares of cybersecurity companies have been on a tear of late, as a rash of high-profile hacks prompt an aggressive response from the U.S. government and may signal strong demand for their services over the long term.

Attacks have recently come with alarming regularity. McDonald’s Corp. on Friday confirmed a breach of South Korean and Taiwan data, a day after hackers stole source code and related internal tools from Electronic Arts Inc. Earlier this week, JBS USA said it had paid a ransom to criminals responsible for a cyberattack in May that disrupted meat processing across North America and Australia.

This spate of breaches follow the high-profile attack on Colonial Pipeline Co. and a ransomware attack on CNA Financial Corp. last month, as well as a breach from December involving SolarWinds. These attacks have provided a tailwind for stocks, lifting the likes of Cloudflare Inc. and CrowdStrike Holdings Inc. to multi-month highs.

“This is one of the only industries where massive failures act as massive catalysts, as hacks reinforce the need for security services,” said Ryan Issakainen, senior vice president at First Trust Portfolios. “The budgets for cybersecurity spending are very likely to grow from here, and because you can’t just make a one-time investment, that growth is likely to be very durable and support companies who offer different services across the space,” he said in a phone interview.

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