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Cybersecurity companies are having a moment on Wall Street right now. The rush of interest in Web 3.0, the metaverse, artificial intelligence and other groundbreaking innovations is a driving force behind this renaissance. And now, investors are seeing this resurgence through a string of new public offerings. ZeroFox (NASDAQ:ZFOX) is one such company, landing on the Nasdaq Exchange for the first time today. Buyers are taking interest, too, with ZFOX stock seeing an immediate upshot.
ZeroFox is a cybersecurity company with a robust set of clients. In addition to top tech companies like Microsoft (NASDAQ:MSFT) and Uber (NYSE:UBER), it serves top research institution Johns Hopkins University and government agencies like NASA and the Department of Defense.
It boasts a variety of cybersecurity products applicable for most companies making pushes into tech. One notable product, which it rolled out with the help of its Vigilante acquisition in 2021, monitors the dark web for information leaks and to provide clients with analysis of cyber attacks. It’s a product that bolsters the fundamental value of the new ZFOX; analysts expect the dark web security niche to be a multibillion-dollar venture in the coming years.
The company is one of the newest available for stock traders, opening for its first day of trading this morning.
Its public debut comes after it struck up a deal with special purpose acquisition company (SPAC) L&F Acquisitions. The deal, worth $1.4 billion, was announced with L&F back in December 2021. It saw approval by the U.S. Securities and Exchange Commission in mid-July. The final approvals for the deal came at a Tuesday shareholder meeting, allowing for the listing to press on.
ZFOX Stock Soars as Cybersecurity Industry Grows Critical
ZFOX stock is already on a major tear as it wraps up its first day of trading. The stock is up by over 34% at the market’s close, taking prices to $14.71 from their listing price of $10. Nearly 800,000 shares traded hands.
The boom in prices demonstrates an increasing interest in the cybersecurity industry. Investors are most certainly taking note of the growing tech market. The Web 3.0 revolution is undoubtedly upon us. Companies like Meta Platforms (NASDAQ:META) evidence this well; its pivot from social message boards to the immersive virtual metaverse puts new tech at the fingertips of users. And the crypto industry is certainly a bellwether for this shift too, growing north of $1 trillion and becoming a household topic.
With the advent of blockchain and other areas of cutting-edge technology, companies and users alike see new security risks. ZeroFox is staying ready to handle it, as CEO James Foster makes clear.
“We’re already experiencing the next digital frontier with metaverse, blockchain and Web 3.0 adoption,” Foster told InvestorPlace. “As new digital platforms are adopted, ZeroFox will adapt to meet the inevitable risks on those platforms, just as we’ve done for the last decade of digital transformation.”
The market certainly needs it. As blockchain security firm CertiK reports, the first half of 2022 saw billions of dollars in crypto stolen from investors. A coming shift in these cybersecurity companies toward tracking and preventing stolen assets is certainly on the horizon. If ZeroFox holds true to its growth model, it could be a big winner.
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.