Rising Cybersecurity Spending: Key Stocks to Watch for Investors

Rising Cybersecurity Spending: Key Stocks to Watch for Investors. Forecasts show a surge in cybersecurity spending, making it crucial for investors to consider stocks like CrowdStrike and Zscaler. Their growth rates and retention rates suggest promising futures in this expanding market.

Date: 19-01-2025

AI Rating: 7

Cybersecurity Spending Growth

The report indicates a significant trend in cybersecurity spending, projected to increase from $183.7 billion in 2024 to $293.9 billion by 2028, marking a 60% growth. This substantial investment influx suggests a robust market opportunity for involved companies.

CrowdStrike Overview

CrowdStrike has demonstrated strong performance despite recent operational challenges, such as a global IT outage. It leads the endpoint security market with a consistent ranking by Gartner. Notably, CrowdStrike's revenue has seen a year-over-year increase of 29%, with subscription revenue up 31%. Its net dollar retention rate of 115% highlights customer loyalty, even as it faces extended sales cycles due to its past incident.

Zscaler Overview

Zscaler also reported promising performance, with a year-over-year revenue growth of 26% and a net dollar retention rate of 114%. The increasing focus on zero trust security positions Zscaler favorably within the cybersecurity space. The growth rate projected for the zero trust network access spending, reaching $4 billion by 2027, further signifies potential for Zscaler’s offerings.

Conclusion

Both CrowdStrike and Zscaler are well-poised to benefit from the increasing cybersecurity expenditures highlighted in the report. The substantial growth in revenue and solid retention rates suggest these companies can thrive as they leverage the significant market opportunities ahead.

Stocks: CRWD ZS