OKTA - Why Microsoft's Cybersecurity Business Is A Key Growth Story To Watch
2024-03-27 15:49:21 ET
Summary
- Microsoft Corporation's cybersecurity business is the world's leading company by revenue, with revenue from cybersecurity verticals expected to reach $25 billion in FY 2024.
- Microsoft's Copilot for Security tool will have new enhancements, including tailored promptbooks, support for multiple languages, and integration with third-party services.
- The cybersecurity market is expanding significantly, with double-digit YoY growth rates expected to continue, creating whitespace for further growth for Microsoft.
- Although I like Microsoft's cybersecurity position, as a group the company looks richly valued, trading at an EV/EBIT of around 30x. Thus, I reiterate a "Hold" rating on Microsoft shares.
On Thursday March 13rd, Microsoft Corporation ( MSFT ) announced that its Copilot for Security tool will become widely available to customers starting April 1, featuring new enhancements. The Copilot for Security enables cybersecurity experts to leverage generative artificial intelligence for various tasks, including incident summaries, vulnerability assessments, and data sharing. In that context, Microsoft highlighted the addition of several new functionalities to the tool, such as tailored promptbooks, support for multiple languages, integration with third-party services, as well as detailed usage reports....
Why Microsoft's Cybersecurity Business Is A Key Growth Story To Watch