Cybersecurity In Focus At “Early Stages Of A Bull Market”
FULL DISCLOSURE: This is sponsored content for Plurilock.
As the technology sector continues to drive market performance, cybersecurity has emerged as a critical area of focus. Dan Ives, an analyst at Wedbush Securities, recently highlighted the importance of cybersecurity within the broader tech landscape, emphasizing its potential for growth as part of what he describes as the “early stages of a bull market.”
In a recent interview on CNBC’s “Closing Bell Overtime,” Ives underscored the resilience and growth potential of the cybersecurity sector. He pointed out that with the increasing reliance on digital infrastructure and the rise of artificial intelligence, the need for robust cybersecurity measures is more pressing than ever.
This comes at a time when tech stocks are leading market gains, and companies specializing in cybersecurity are positioned to benefit from the heightened focus on digital security.
“We are in the early stages of a bull market,” Ives stated, noting that the recent fluctuations in the broader market were a minor setback in what he believes is a long-term trend driven by technological advancements.
According to Ives, cybersecurity is one of the strongest subsectors within tech, with significant upside potential not only for the remainder of 2024 but extending into 2025 and beyond.
Recent high-profile cyber incidents have further underscored the critical role of cybersecurity in today’s digital economy. For example, the recent challenges faced by CrowdStrike (NASDAQ: CRWD), a leading cybersecurity firm, have brought renewed attention to the sector. While CrowdStrike’s issues may have raised concerns, Ives suggested that other companies, such as Palo Alto Networks (NASDAQ: PANW), could stand to gain from the situation.
“Palo Alto is actually one of our top names the last few years,” Ives said, expressing confidence in the company’s future prospects. Despite being one of the biggest losers on the NASDAQ 100 on the day of the interview, Ives believes that Palo Alto Networks is well-positioned to benefit from the ongoing demand for cybersecurity solutions.
Cybersecurity boom
Another factor driving optimism in the cybersecurity sector is the increasing focus on government contracts. Ives noted that governments are increasingly investing in next-generation technology, including AI and cybersecurity, to protect critical infrastructure and national security.
This trend is expected to provide a significant boost to companies like Palo Alto Networks and Palantir Technologies (NYSE: PLTR), which are heavily involved in providing cybersecurity and data analytics solutions to government agencies.
“It is a different merger we’re seeing from a spending perspective,” Ives observed, referring to the way government spending is increasingly aligned with cutting-edge technological developments.
Riding on the wave of this cybersecurity boom is Plurilock Security Inc. (TSXV: PLUR), a key player in the industry known for its advanced security solutions that help organizations maintain secure and efficient operations. Founded in 2016, Plurilock has made a name for itself through its innovative use of behavioral biometrics, a technology that continuously verifies a user’s identity based on the way they interact with devices—such as their mouse movements and typing patterns.
The company has demonstrated growth reflecting the company’s successful expansion and its ability to address the growing demand for sophisticated cybersecurity solutions, the company’s potential is apparent when one looks into similar names that are valued on double-digit multiples on their annual revenue.
In 2023, Plurilock achieved $70.4 million in revenue, marking a 9% increase from the previous year. At a valuation of over $115 million, Plurilock proves to be a budding firm ripe for riding on the cybersecurity industry boom.
Plurilock is a leading North American IT Value-Added Reseller and cybersecurity solutions provider, supporting clients across federal, state, and local governments, as well as major global companies.
Its success is driven by advanced cybersecurity solutions like the Plurilock AI Cloud platform, which secures users and software without new deployments, offering single sign-on, granular access controls, and multi-factor authentication. Plurilock’s AI DLP ensures data protection by managing access and preventing unauthorized activities, while AI PromptGuard safeguards sensitive data during AI interactions.
This year, Plurilock filed a nonprovisional patent for its AI-driven cloud access security broker technology, aimed at preventing data leaks in generative AI platforms. The company’s innovations have earned it a gold medal in Info-Tech’s 2024 Data Quadrant for Cloud Access Security Broker solutions, marking the fifth consecutive year of recognition.
Plurilock recently secured a significant sales agreement with the U.S. Department of Transportation, valued at $100,000 initially, with potential renewals worth up to $215,000 over five years. CEO Ian L. Paterson expressed pride in the company’s partnerships with U.S. government agencies, including Homeland Security and the Department of Defense.
Plurilock has also bolstered its leadership team, adding Ron Wilson, President of Best Buy Canada, to its Industry Advisory Council. Wilson’s extensive experience in technology sales complements the company’s strategic growth, following other high-profile appointments like former CrowdStrike director Joe Sexton and Palantir senior advisor Bryan Cunningham.
FULL DISCLOSURE: Plurilock Security is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Plurilock Security. The author has been compensated to cover Plurilock Security on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
