PANW - CIBR: Investing In Cybersecurity Is Not The Same As Cloud Software

2024-05-30 23:55:13 ET

Summary

• Cybersecurity stocks have unique tailwinds that distinguish them from the broader cloud software sector.
• The CIBR ETF is a good way to gain exposure to the cybersecurity industry.
• The CIBR fund has performed well compared to its peers and the broader market.
• The cybersecurity industry's strong double-digit projected growth justifies the CIBR fund's valuation multiple levels.

Investment Thesis

With Salesforce (CRM) reporting slower growth in their earnings report yesterday , any stock that has anything to do with cloud software, including cybersecurity stocks, is getting trashed in the dumpster. While parallels can be easily drawn between the larger cloud software space and cybersecurity stocks, simply due to the homogenous nature of the cybersecurity industry’s business model optics, growth metrics, industry acronyms, etc....

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