Last February, a hospital was held hostage.
No one was killed. Nary a shot was fired. The hijacker didn’t even go inside the building.
From the comfort of his home, he locked down the hospital’s computer systems with a few key strokes...
And demanded a $17,000 “ransom.”
He got it, too. The hospital was left with no other choice. It paid the hacker in bitcoin, the anonymous cryptocurrency.
It’s a frightening reminder of the growing need for cybersecurity - not just in the U.S., but worldwide.
Today, we’ll look at two of the globe’s leading cybersecurity companies. As they expand their services, shareholders will profit from their war on cyberterrorism.
An Industry Giant
Hackers are constantly making newer, deadlier viruses. Customers, understandably, want software that can protect them from all angles.
Fortinet Inc. (Nasdaq: FTNT) has a hand in every pot. Computers, cell phones, tablets... you name it.
In 2008, it blew the lid off a malicious bug in the form of Facebook’s “Secret Crush” app. Three million people fell victim to the scam prior to Fortinet exposing it.
Since then, the company’s CEO, Ken Xie, has formed a partnership with competitors to help each other stay aware of the latest bugs. The group is called the Cyber Threat Alliance. The fellowship includes Fortinet Inc (NASDAQ:FTNT), Symantec (Nasdaq: NASDAQ:SYMC), McAfee and Palo Alto Networks Inc (NYSE:PANW).
It goes to show Fortinet’s devotion to finding solutions - and pleasing buyers.
According to the latest numbers, customers are very pleased. Fortinet’s second quarter earnings report showed a revenue of $311.4 million. That’s up 30% year over year.
Year to date, shares are up more than 15%.
Within the cybersecurity sector, Fortinet is a fairly safe play. It’s well-established, and analysts are bullish about its future.
Our next company is a slightly different story. But it could generate some wild gains...
An Underdog With a Secret Weapon
As you can see below, shares of MGT Capital Investments Inc (NYSE:MGT) have skyrocketed in 2016.
Year to date, the stock has shot up 1,492%.
A big reason for this surge is MGT’s announcement of its new CEO, John McAfee.
McAfee is perhaps the only household name in the cybersecurity game. Having developed the first anti-virus program in 1987, McAfee is a pioneer.
Industry insiders are curious to see what innovations he’ll bring to MGT.
McAfee is already hard at work. Within days of becoming CEO, he found a severe flaw in Android phones that leaked private messages.
He’s also building a service that kills viruses before they infect your computer. This could be a huge milestone for the industry.
With McAfee at the helm, MGT is in the midst of acquiring a varied portfolio of cybersecurity solutions. But only time will tell if his guidance will be enough to keep the company soaring.
Either way, the future looks bright indeed for cybersecurity as a whole.