Soprano · 2024-03-02T17:20:39.992783Z

Which cybersecurity stock do you think has the deepest moat? I honestly understand the difference between $AKAM $ZS $NET $CRWD $PANW and $FTNT not quite. I personally opted for Fortinet because its fundamentals look the healthiest.

1Année

They are probably all healthy - they are just at different stages - some are still striving for strong growth in order to have the greatest possible operating leverage later on, others are turning the profitability screw because less growth is possible. I find it difficult to identify a real moat, as some are fishing in different waters. PS: and $NET is not a real cyber security company. My favs are Crowdstrike, Palo Alto and (Cloudflare)

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Voir toutes les 10 autres réponses

Staatsmann@Staatsmann

1Année

In principle, I find $PLTR Palantir interesting, as the main customer group "governments" in particular are dependent on external know-how and have the deepest pockets compared to companies...

I sometimes don't quite understand the products or business models of some other providers.

AI in particular will probably have a big impact on the sector!
Firstly because the attack techniques will become more sophisticated, but also because learning systems can become more secure.
(Keyword "Skynet" to draw a comparison with a pop culture movie).

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Cristiano@Rocketman_23

1Année

I have Zscaler and Crowdstrike ✌️

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Pezi@Pezi

1Année

Not just cyber security, but worth a look in my opinion $BAH

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Tenbagger2024@Tenbagger2024

1Année

@Pezi
It's been on my watch for some time.
In contrast to Palantir, the share is a bargain.
The company is 110 years old and therefore the risk should be rather low.
I am still waiting for a valuation from a friend.

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devnerd_daddy@devnerd_daddy

1Année

$NET I take a very critical view. I consider their moat to be small. They have data centers all over the world and use them to distribute content. Many hosting companies such as $IOS use this and thus save on DDoS protection costs.

But: If Microsoft or Google use their existing data centers to offer the same service tomorrow, the difficulty of switching is manageable. And they have the know-how, because they already offer something like this within their own cloud services.

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Soprano@Soprano

1Année

@devnerd_daddy Strong explanation, I can work with that

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user03@user03

1Année

@devnerd_daddy But Cloudflare doesn't just do cybersecurity

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devnerd_daddy@devnerd_daddy

1Année

@User03 They actually only do CDN.

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user03@user03

1Année

@devnerd_daddy Yes, cyber security is only a very small part of it, CDNs are primarily there to get the data from A to B faster and they already have some advantages due to their large network to reduce the transmission distance. Security is actually only a very small part of it in my opinion

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user03@user03

1Année

@User03 I may have misunderstood and you don't mean the point about security, but I do see an advantage over other companies here

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devnerd_daddy@devnerd_daddy

1Année

@User03 What I mean is that their only strength, namely the CDN, can easily be copied by Microsoft or Google. In the end, the data centers only cache data and that's exactly what every cloud provider does with geo-redundant data centers. So the moat is very weak.

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user03@user03

1Année

@devnerd_daddy Now I've understood it and yes, that could be the case, it's just a question of which products ultimately bring more to the end user

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Soprano@Soprano

1Année

@devnerd_daddy Hey Devnerd, what would be your favorites?

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devnerd_daddy@devnerd_daddy

1Année

@WarrenG I honestly admit that I don't know the others that well. I know Cloudflare because I worked with them professionally and have been following what they do on the side ever since. I also have a lot to do with Azure, hence the parallels with Microsoft.

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finance_noob2000@finance_noob2000

1Année

To explain this: all clouds have CDN, the one from AWS is called Cloudfront, for example, and distributes static content (website etc.) to so-called edge zones (e.g. data centers in Frankfurt, edge zone / cache in Hamburg) so that you can surf quickly. The whole thing worldwide. In addition, they have DDoS protection etc. by means of firewalls, which they all have as they are. Cloudflare is just a little better at what they do: https://www.cloudflare.com/de-de/cloudflare-vs-cloudfront/ but they don't have a huge moat. If I'm on AWS anyway, I use Cloudfront, i.e. the AWS native CDN.

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Siytta@Siytta

1Année

I have the most to do with products from $SPLK and $PANW.

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Siytta@Siytta

1Année

@Siytta The SIEM solution from $SPLK feels like it has an immense moat. Hardly any of our customers rely on competitor products and a subsequent change is probably too expensive for most of them

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user03@user03

1Année

@Siytta What is that?

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K@TechNav

1Année

$XAIX You are well covered in this sector.

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Soprano@Soprano

1Année

@TechNav To what extent does an AI ETF cover the topic of cybersecurity?

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K@TechNav

1Année

@WarrenG Take a look at the index key figures for this ETF. There you will clearly read "exposure to themes related to among others AI, big data and cyber security", i.e. also a focus on data security. Companies such as $PANW, $CRWD, $FTNT, $ZS etc. are all included.

https://etf.dws.com/en-lu/IE00BGV5VN51-artificial-intelligence-big-data-ucits-etf-1c/

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Soprano@Soprano

1Année

@TechNav Of the FIVE top positions in this ETF, I have FOUR in my own portfolio among the top five positions. So this doesn't help me at all. Apart from that, this ETF is again full of ESG drivel.

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Fabian@Sxyxys

1Année

$ZS At Zscaler, the MACD line broke through the signal today and the RSI value of 36 is also low. I am getting in. What do you think?

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Soprano@Soprano

1Année

@Sxyxys The post is precisely about understanding the business model so that you don't just jump in somewhere without a plan.

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