Stocks Likely to Rise After Microsoft Corporate Network Security Breach By Investing.com


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JPMorgan experts said in a research report on Monday that they believe security software companies that compete with Microsoft in their key markets will benefit from the recent security incident.

The comments came after Microsoft announced a security incident in its corporate systems, which was made public on Friday after the stock market closed.

“While some may consider the security issue to be relatively harmless, we believe the incident could lead to greater distrust and over-reliance on Microsoft for security solutions.”, commented the experts.

Experts said that in their opinion, companies in the security software industry that are likely to see a positive impact from the incident include CrowdStrike Holdings Inc. (CRWD), SentinelOne, Inc. (OKTA). They also predict a benefit for CyberArk Software (CYBR), as “the incident could serve as an additional catalyst to raise awareness about the importance of privileged access management.”

“Microsoft is often cited as a major competitor because it has built a significant business in the security space, with revenues exceeding $20 billion and more than $4 billion invested in research and development every year. , particularly in the areas of endpoint and identity security”, the experts further note.

“However, customers must always weigh costs and risks, and this recent security incident may raise concerns among customers and partners about the risks related to Microsoft’s security measures, the effectiveness of its security technologies, and the scale of the attacks. cyber threats that Microsoft faces as a frequent target. platform.”

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