Malicious assaults on websites appear to be getting worse. While that’s bad for the victims, it stands to boost companies specializing in cybersecurity.
Google, the ubiquitous search engine owned by
Alphabet
(ticker: GOOGL), said this week that it is coping with one of the largest online attacks ever, seven times bigger than the last one. The distributed denial of service attack, in which hackers bombard a site with information requests to try to overwhelm it and force it to shut down, started in August and is ongoing, Google said.
Amazon
(AMZN) and
Cloudflare
(NET) also said they are being targeted.
While Google didn’t mention possible motivations for the attacks, it could be just to spread chaos and confusion. Cybercriminals could also demand a ransom in exchange for ceasing the attack that disrupts their business–it’s possible that hackers may demand a ransom to end the assault.
It’s not just the big tech giants being targeted. There has been a recent upsurge with casino operators
MGM Resorts
(MGM) and
Caesars Entertainment
(CZR) having also reported that they were recently victims of cyberattacks. Cleaning products maker
Clorox
(CLX) also warned last month that earnings will be hurt by a cyberattack that had damaged its IT infrastructure.
The growth threats may lift cybersecurity firms, most of which are already having a very good year.
Palo Alto Networks
(PANW) has gained 86% this year and is up 0.1% in Thursday’s premarket. Okta (OKTA) has gained 29% since Jan. 1.
Zscaler
(ZS) is already 55% higher and Crowdsrike (CRWD) has increased 79%.
Write to Brian Swint at [email protected]
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