What happened
Cybersecurity stocks jumped on Thursday. By the close of trading, shares of CrowdStrike (CRWD +0.75%), Okta (OKTA 4.16%), and Cloudflare (NET 2.52%) were up 8.3%, 6.6%, and 8.7%, respectively.
So what
Demand for dependable cybersecurity solutions is soaring, as COVID-19 drives more businesses to adopt work-from-home arrangements and shift their operations to the cloud. Alarmingly high coronavirus case counts had investors once again bidding up the shares of CrowdStrike, Okta, and Cloudflare on Thursday on the expectations that these web security leaders will deliver strong results in the coming quarters.
Cybersecurity stocks rose sharply on Thursday, as investors sought shelter from the COVID storm. Image source: Getty Images.
Now what
A rival's misfortune may also be contributing to these online defense specialists' gains. Fellow cybersecurity company FireEye (FEYE +0.00%) suffered an embarrassing security breach earlier in the week. FireEye said the hackers were able to steal the tools it uses to test the online defenses of its clients, which could be used to launch more sophisticated cyberattacks around the world.
With hackers and other nefarious actors now better armed, it's never been more vital for companies to bolster their cyber defenses -- and they'll likely turn to CrowdStrike, Okta, and Cloudflare for help.
