Hello dear Getquin Community,

Over the past few days, I have been working intensively on the topic of cyber security and its fundamental importance in various sectors such as healthcare, technology, energy, armaments & defense, e-commerce, software, insurance, industry, utilities, commodities, banks, fintech, holdings, crypto and blockchain. I took a closer look at the big players, the hidden champions and the essential blade manufacturers in the industry. My aim was to gain as comprehensive a picture as possible of the different levels of this industry.

If I have overlooked any important aspects or have not categorized something correctly, I look forward to your comments and interesting additions @Tenbagger2024
@Multibagger
@Simpson
@Vegasrobaina . Together we can understand the topic even better and learn from each other.

Feel free to leave a 👍. I wish you every success with your investments 🚀

Contribution:

Cybersecurity is evolving from a marginal topic to the foundation of global markets. Whether healthcare, banking, utilities, armaments & defense, energy, industry or the digital infrastructure for artificial intelligence and blockchain, the need for protection mechanisms is increasing everywhere. While the big players such as $PANW (+0,28%) Palo Alto Networks, $CRWD (+0,69%) CrowdStrike or $ZS (+1,36%) Zscaler are in the spotlight, more and more specialized providers are emerging that are essential in their niches and often have disproportionately high growth potential. Hidden champions such as $SECT B (+1,21%) Sectra in the healthcare sector, $NCNO (-0,77%) nCino in the banking sector or $ESTC (+1,43%) Elastic in the data center show that cyber security has long been a diversified ecosystem. In addition, we must not overlook the blade manufacturers, i.e. the companies that provide the technological basis. These include chip manufacturers such as $NVDA (-3,33%) , $INTC (-1,19%) Intel or $AMD (-7,23%) AMD, data center operators such as $EQIX (+0,2%) Equin$DLR (+0,03%) Digital Realty as well as software and infrastructure providers such as $ESTC (+1,43%) Elastic, $DDOG (+2,57%) Datadog or $ANET (+0,36%) Arista Networks, without whose technology the security providers' solutions would not be scalable. The capital markets are reacting to this with valuation premiums, as the dependence on secure infrastructures is comparable to electrification in the 20th century. Investors are now faced with the question of whether to favor the established market leaders or invest in smaller companies that fly under the radar but could potentially be the real winners of tomorrow.

🔑Takeaway:

Cybersecurity is not an isolated trend, but a key investment factor across all industries from hospitals to data centers from payments to crypto platforms.

Healthcare

Big players:

$PANW (+0,28%) Palo Alto Networks (PANW), $FTNT (+2,62%) Fortinet (FTNT), $CHKP (+0,44%) Check Point (CHKP), $CRWD (+0,69%) CrowdStrike (CRWD), $S (+2,57%) SentinelOne (S), $CYBR (+0,27%) CyberArk (CYBR), $ZS (+1,36%) Zscaler (ZS), $NET (+1,08%) Cloudflare (NET), $AKAM (+0,42%) Akamai Tech. (AKAM)

- Core provider for firewalls, zero trust, endpoint and web security

Hidden champions:

$SECT B (+1,21%) Sectra (SECT-B.ST) - secure imaging & healthcare security

$VRNS (+0,38%) Varonis Systems (VRNS) - protection of sensitive patient data

Imprivata (private, partnerships with listed players) - identity management for clinics

Shovel manufacturer:

$NVDA (-3,33%) Nvidia (NVDA), $INTC (-1,19%) Intel (INTC), $AMD (-7,23%) AMD (AMD) - Chips & computing power for security appliances

$EQIX (+0,2%) Equinix (EQIX), $DLR (+0,03%) Digital Realty (DLR) - Data center infrastructure for clinical data

$ESTC (+1,43%) Elastic (ESTC), $DDOG (+2,57%) Datadog (DDOG) - basic software for monitoring & analytics

🔑 Takeaway Healthcare

Healthcare data is highly sensitive and clinics are at high risk of ransomware. In addition to large security providers, hidden champions such as Sectra and Varonis are gaining in importance as they secure directly at the interface between patient data and medical devices.

Technology, Data centers & AI, Telecommunications

Major players:

$ZS (+1,36%) Zscaler (ZS), $S (+2,57%) SentinelOne (S), $CHKP (+0,44%) Check Point (CHKP)

- Protection for cloud and AI environments

Hidden champions:

$ESTC (+1,43%) Elastic (ESTC) - Security Analytics

$ANET (+0,36%) Arista Networks (ANET)

- Network switches for data centers

Blade manufacturers:

$EQIX (+0,2%) Equinix (EQIX), $DLR (+0,03%) Digital Realty (DLR)

- Data center infrastructure

$NVDA (-3,33%) Nvidia (NVDA), $INTC (-1,19%) Intel (INTC), $MRVL (-1,39%) Marvell Tech. (MRVL)

- Chips & computing power for AI and security

Special players telecommunications

$AKAM (+0,42%) Akamai Tech. (AKAM) & Cloudflare (NET) - secure traffic and mobile data

$RDWR (+0%) Radware (RDWR) - DDoS protection for telcos

$CSCO (-2,53%) Cisco (CSCO) - network security for carriers

$CLAV Clavister Holding AB (CLAV) - through SD-WAN and carrier security

🔑 Takeaway Technology, Data Centers & AI

Data centers and AI platforms are the backbone of the digital economy. Zero Trust and cloud security from Zscaler or SentinelOne meet shovel manufacturers such as Equinix or Nvidia, who are indispensable with infrastructure and chips.

Energy

Major players:

$FTNT (+2,62%) Fortinet (FTNT, NASDAQ) - OT/ICS security for power grids and power plants

$PANW (+0,28%) Palo Alto Networks (PANW, NASDAQ) - Zero Trust & network protection for energy suppliers

$CHKP (+0,44%) Check Point (CHKP, NASDAQ) - Critical infrastructure protection, gas and oil industry

Hidden Champions:

Dragos (private, IPO candidate) - leader in OT security, specialized in energy infrastructures

$RDWR (+0%) Radware (RDWR, NASDAQ) - DDoS defense for energy networks

$NCC (-1,18%) NCC Group (NCC.L, London) - penetration tests & audits for utilities

$CLAV Clavister Holding AB (CLAV) - OT/ICS and infrastructure security

Shovel manufacturer:

$SBGSY (+0%) Schneider Electric (SBGSY, OTC) - OT/ICS hardware with security components

$ENR (-2,06%) Siemens Energy (ENR, Frankfurt) - Energy infrastructure with embedded security solutions

$AVGO (+8,33%) Broadcom (AVGO, NASDAQ) - Security chips for networks in energy environments

E-Commerce

Major players:

$NET (+1,08%) Cloudflare (NET, NYSE) - DDoS and API protection for online stores & payment platforms

$AKAM (+0,42%) Akamai (AKAM, NASDAQ) - Application security & bot management in e-commerce

$FFIV (-0,09%) F5 Networks (FFIV, NASDAQ) - API & payment security for digital platforms

Hidden Champions:

$RSKD (+0,77%) Riskified (RSKD, NYSE) - Fraud prevention in online retail

$VRNS (+0,38%) Varonis Systems (VRNS, NASDAQ) - Protection of customer data

$CYBR (+0,27%) CyberArk (CYBR, NASDAQ) - Identity & access protection for payment processes

Shovel manufacturer:

$V (-2,85%) Visa (V, NYSE) & $MA (-2,53%) Mastercard (MA, NYSE) - not classic cybersecurity, but operator of secure payment networks

$ESTC (+1,43%) (ESTC, NYSE) - fraud analytics for e-commerce platforms

$DDOG (+2,57%) Datadog (DDOG, NASDAQ) - monitoring & security analytics for retail infrastructure

🔑 Takeaway:

Energy is particularly vulnerable due to OT/ICS systems, which is where specialists like Dragos come in.

E-commerce needs fraud prevention in addition to traditional web security, which is why players such as Riskified are occupying a niche.

Armaments & Defense

Major players:

$NOC (-0,4%) Northrop Grumman (NOC, NYSE) - leader in cyberdefense for military & intelligence agencies, also developing offensive cyber capabilities

$BAESY (+2,5%) BAE Systems (BAESY, OTC) - strong cyber intelligence division, protects critical military and government networks

$RTX (-1,4%) Raytheon Technologies (RTX, NYSE) - defense company with growing cybersecurity portfolio for military communications & satellites

Hidden Champions:

$PLTR (-2,66%) Palantir Technologies (PLTR, NYSE) - Data and analytics platform with strong cybersecurity component, often for defense ministries

$CACI (+2,51%) CACI International (CACI, NYSE) - specializes in cyber intelligence, network protection and military IT services

$LDOS (-0,34%) Leidos Holdings (LDOS, NYSE) - IT and cybersecurity service provider for US defense and NATO

$CLAV Clavister Holding AB (CLAV) - used by government and military organizations

$ADVE Advenica (ADVE) - Specialized security, relevant for government agencies and national infrastructure

Shovel manufacturer:

$LHX (-0,47%) L3Harris Technologies (LHX, NYSE) - Provides communications and cyber hardware for military networks

$GD (-1,21%) General Dynamics (GD, NYSE) - with its IT division GDIT also a provider of cyber defense infrastructure

$KTOS (+0,88%) Kratos Defense (KTOS, NASDAQ) - specializes in drones, satellite systems and cyber hardening of defense communications

🔑 Takeaway:

In the defense sector, the boundaries between traditional defense and cybersecurity are blurring. Alongside the large defense contractors, hidden champions such as Palantir, CACI and Leidos are emerging to provide pure cyber and data expertise. Shovel manufacturers such as L3Harris and Kratos secure the technical infrastructure.

Software & insurance

Big players:

$OKTA (+1,3%) Okta (OKTA), $CYBR (+0,27%) CyberArk (CYBR), $CRWD (+0,69%) CrowdStrike (CRWD)

- Identity, endpoint and cloud security

Hidden champions:

$VRNS (+0,38%) Varonis (VRNS) - Data security

SailPoint (private, formerly NYSE) - Identity Governance

$FROG (-0%) JFrog (FROG) - DevSecOps & Supply-Chain-Security

$CYBE (+0,53%) CyberCatch Holdings, Inc (CYBE) - Provides AI-based cybersecurity SaaS

$GEN (-0,79%) Gen Digital (GEN) - one of the largest consumer cybersecurity providers worldwide (Norton, Avast, LifeLock), strong in identity protection and data protection for consumers & small businesses

Shovel manufacturer:

$MSFT (-3,17%) (MSFT), $GOOG (+0,47%) Alphabet (GOOGL), $AMZN (-1,95%) Amazon (AMZN)

- Cloud security base

$FFIV (-0,09%) F5 Networks (FFIV) - API protection for SaaS & insurance platforms

🔑 Takeaway Software & Insurance

Data and identity protection take center stage. Major players such as Okta and CyberArk secure access, while hidden champions such as Varonis and JFrog provide specialist solutions. Cloud providers such as Microsoft and Amazon are both platform operators and security suppliers.

Industry, supply & raw materials

Major players:

$FTNT (+2,62%) Fortinet (FTNT), $CSCO (-2,53%) Cisco (CSCO), $PANW (+0,28%) Palo Alto Networks (PANW)

- Network protection for critical infrastructures

Hidden champions:

$RDWR (+0%) Radware (RDWR) - DDoS protection

$NCC (-1,18%) NCC Group (NCC.L) - OT-Security & Penetration Tests

$SECT B (+1,21%) Sectra (SECT-B.ST) - secure infrastructure in the OT/healthcare intersection

$CLAV Holding AB CLAV) - OT/ICS and infrastructure security

$ADVE Advenica (ADVE) - Specialized security, relevant for public authorities and national infrastructure

Shovel manufacturer:

$AVGO (+8,33%) Broadcom (AVGO) - Security chips

Juniper Networks (JNPR) - Network backbones

$ANET (+0,36%) Arista Networks (ANET) - high-end switches

🔑 Takeaway Industry, Supply & Raw Materials

OT/ICS systems in production, energy and raw materials are attractive targets. Fortinet and Palo Alto dominate, but hidden champions such as Radware and the NCC Group offer special expertise for attacks on industrial control systems.

Banks, Fintech & Holdings

Big players:

$CRWD (+0,69%) CrowdStrike (CRWD), $PANW (+0,28%) Palo Alto Networks (PANW), $ZS (+1,36%) Zscaler (ZS)

- Core protection for banks & digital platforms

Hidden champions:

$NCNO (-0,77%) nCino (NCNO) - Cloud Banking Security

$NCC (-1,18%) NCC Group (NCC.L) - Audits & Compliance

$CYBE (+0,53%) CyberCatch Holdings, Inc (CYBE) - Provides AI-based cybersecurity SaaS

$GEN (-0,79%) Gen Digital (GEN) - through fraud prevention and identity topics

Shovel Manufacturer:

$FFIV (-0,09%) F5 Networks (FFIV) - API security for payments

$AKAM (+0,42%) Akamai Tech. (AKAM) - Web & Payment Security

$ESTC (+1,43%) Elastic (ESTC) - Fraud Analytics

🔑 Takeaway Banks, Fintech & Holdings

High regulatory pressure makes cybersecurity a mandatory field. In addition to established providers, banks are relying on hidden champions such as nCino or Darktrace for cloud banking and anomaly detection. Shovel manufacturers such as F5 or Akamai secure payment APIs and banking portals.

Crypto & blockchain

Big players:

$PANW (+0,28%) Palo Alto Networks (PANW), $FTNT (+2,62%) Fortinet (FTNT), $CRWD (+0,69%) CrowdStrike (CRWD)

- Core protection for exchanges, wallets and blockchain infrastructure

Hidden champions:

$BBAI (+0,92%) BigBear.ai (BBAI) - Blockchain Fraud Detection

$RIOT (-0,62%) Riot Platforms (RIOT) - Mining with a focus on security

Shovel manufacturer:

$NVDA (-3,33%) Nvidia (NVDA), AMD (AMD) - Chips & Mining Hardware

$NET (+1,08%) Cloudflare (NET), $AKAM (+0,42%) Akamai Tech. (AKAM)

- Network protection for wallets & exchanges

🔑 Takeaway crypto & blockchain

Crypto ecosystems are heavily affected by attacks on exchanges, wallets and smart contracts. While traditional security players provide protection, niche providers such as BigBear.ai and Riskified are emerging that specialize specifically in fraud and blockchain risks.

Source: Own analysis, image material: schwarz-digits

$PDD (-0,47%)
$601318
$EH
$OKTA (+1,3%)
$MDB (+0,49%)
$3690 (+1,34%)
$KSS (+0,14%)
$ANF
$CRWD (+0,69%)
$SNOW (+0,91%)
$HPQ (+0,61%)
$NTNX (+0,66%)
$NVDA (-3,33%)
$DHER (+3,02%)
$LI (-2,18%)
$DELL (-1,85%)
$S (+2,57%)
$IREN (-0,67%)
$ULTA (-2,3%)
$MRVL (-1,39%)
$AFRM (-3,33%)
$ADSK (+1,04%)
$BABA (+2,84%)

Which companies with a market capitalization of less than 10 billion do you think are particularly promising?

My favorites are:

$ELF (-0,39%)
$CELH

$RIVN (+3,76%)

$S (+2,57%)

$QBTS (+0,23%)

$RGTI

$VIST (-2,1%)

A number of important earnings releases are scheduled for the coming week. The focus will be on:

📌 Adobe ($ADBE (+1,38%) )

📌 Oracle ($ORCL (+3,74%) )

📌 DocuSign ($DOCU (-2,92%) )

📌 D-Wave Quantum ($QBTS (+0,23%) )

📌 ZIM Integrated Shipping ($ZIM (+0,57%) )

📌 ULTA Beauty ($ULTA (-2,3%))

📌 Kohl's ($KSS (+0,14%) )

📌 Dollar General ($DG (+0,32%))

📌 UiPath ($PATH (+1,98%) )

📌 SentinelOne ($S (+2,57%))

Which of these companies are you following with particular interest? Do you have positions in any of these stocks?

🔗 Source: Earnings Whispers

Earnings next week 🗓️

$ZS (+1,36%)

$CRM (+1,97%)

$OKTA (+1,3%)

$LULU (-6%)

$MRVL (-1,39%)

$CHWY (+1,73%)

$PATH (+1,98%)

$ULTA (-2,3%)

$S (+2,57%)

$FL (-1,06%)

$DOCU (-2,92%)

$DLTR (+0,55%)

$GTLB (+4,44%)

$HPE (+0,55%)

$IOT

$DG (+0,32%)

$CRDO

$PSTG (+0,1%)

$VEEV (+0,47%)

$AEO

$BOX (-0,99%)

$FIVE (-1,27%)

$TD (-0,16%)

$CURV

$BNS (-0,76%)

$SNPS (-2,02%)

$RY (-1,6%)

$CNM

$ASAN (-9,13%)

$WOOF (+0,95%)

$BBW (+5,26%)

$DCI

$CHPT

$BASE (-1,42%)

$VSCO (+1,91%)

$CSIQ (+13,21%)

$THO (-0,02%)

$GWRE (+5,5%)

$SIG (+2,83%)

$CBRL (+0,22%)

$COO

$CPB (+3,27%)

$BMO (+0,14%)

$DSGT

$DOO (-0,89%)

$CAL

$SMAR

$REX (-3,67%)

$PVH (-2,32%)

$PEAK (+0,65%)

Crowdstrike Holding: The hawk that can no longer fly?

small quarterly comparison of CrowdStrike Holdings, Inc.

CrowdStrike Holdings, Inc. is considered one of the pioneers in the field of cyber security. The company specializes in cloud-based security solutions that help organizations effectively defend against modern cyber threats. With its advanced endpoint protection platform that uses AI and sophisticated algorithms to detect and defend against threats in real time, CrowdStrike has made a name for itself as a leader in innovation.

Historical development

Founded in 2011 by George Kurtz, the company has $CRWD (+0,69%) has experienced impressive growth since its beginnings. Before going public in 2019, the company increased its recurring revenue 35-fold - clear evidence of the success of its business strategy. This growth trajectory has continued in recent years: in 2023, CrowdStrike reported a 41% increase in its customer base, which now includes over half of the Fortune 500 companies.

Business model

CrowdStrike's business model is primarily based on a subscription approach, which generates around 92% of its revenue. With its Software-as-a-Service (SaaS) offering, the company ensures a stable share of recurring revenue. In addition, CrowdStrike also offers professional services, although these only account for a small proportion of revenue.

Core competencies

CrowdStrike's key strengths include:

- Data analytics and AI: Processing over 5 trillion signals per week, CrowdStrike uses advanced data analytics to efficiently identify and defend against threats.

- High customer retention: With a customer retention rate of over 98%, customer trust and satisfaction is reflected in the platform.

- Scalability and network effects: CrowdStrike's ability to process huge amounts of data and continuously learn from it gives the company a clear competitive advantage that sets it apart from new market entrants.

Future prospects and strategic initiatives

With ambitious targets for the coming years, CrowdStrike is aiming to achieve an annual recurring revenue (ARR) of USD 5 billion by the end of the 2026 financial year. To achieve this goal, the company plans to further optimize its quality standards and expand customer communication in order to strengthen customer loyalty and minimize churn.

In an increasingly competitive market environment, in which heavyweights such as Microsoft and Alphabet are also intensifying their cyber security solutions, CrowdStrike is relying on its innovative strength and ability to react quickly to new threats. In the future, the company would also like to optimize its margins and further increase its operational efficiency in order to maintain its market position in the long term.

Current performance of the CrowdStrike share

Over the course of the year, CrowdStrike shares have gained an impressive 86%, which is primarily due to the high level of acceptance and distribution of the platform. Since the IPO on June 12, 2019, the share has even achieved remarkable growth of 372 %. Nevertheless, the share reached higher values in the past before plummeting significantly following an incident on July 19. This raises the question of what happens next and how CrowdStrike is positioned compared to its competitors.

The incident on July 19

July 19 presented CrowdStrike and its CEO with one of the biggest challenges in the company's history. On this day, a configuration update was uploaded to the platform that paralyzed numerous customer systems. The company's own security mechanisms had classified the update as unknown and shut down the systems as a result. Whether this should be seen as proof of CrowdStrike's incompetence or as proof of the software's functionality remains controversial. In any case, shareholders reacted with concern: the share price fell by 42%. The main reason for this was uncertainty about the consequences of this incident.

The consequences of the incident

According to the CEO, the July 19 event had a significant impact on the last two weeks of the quarter. While CrowdStrike quickly mobilized teams to support customers and continued to close contracts, including significant nine-figure expansion contracts, the CFO added that it is too early to assess the exact legal exposure in terms of potential legal consequences. However, customer contracts contain limitations of liability and CrowdStrike has insurance policies in place to mitigate the potential impact of certain claims. Despite the challenges, CrowdStrike remains strongly committed to customer retention and is well positioned to invest in the business for the long term.

The question remains as to how the company will recover from the incident in the long term. Despite some deterred customers, trust appears to be largely intact, supported by discounts and the quality of the product. In addition, CrowdStrike has responded quickly to the problem, investing significant resources and launching customer loyalty programs to restore trust. Conclusion: There is currently nothing to suggest that the incident poses an existential problem for the company.

The current figures

The latest business figures, which are not yet included in the images, continue to show solid growth:

- Revenue: revenue increased to US$963.9 million, up 32% year-on-year and 4.6% quarter-on-quarter, despite the significant impact of the incident.

- Gross profit: Gross profit was USD 726.471 million, up 4.4% quarter-on-quarter.

- Net Income: Net income amounted to USD 46.690 million, an increase of 9% quarter-on-quarter.

These figures are fundamentally positive, but leave open the question of whether there are still challenges in customer retention. The long-term development remains to be seen, but the company's reactions and measures suggest that CrowdStrike is well on the way to regaining the trust of its customers and continuing to grow.

(Image 4&6)

Concerns and challenges for CrowdStrike

Despite the solid performance, there are some key challenges that CrowdStrike needs to address:

- Customer Commitment Packages and margin pressure: the introduction of customer loyalty programs, which essentially act as discount promotions, could put pressure on margins and profits in the short term. Even if these measures do not play a decisive role in the long term, the risk of a temporary decline in profitability remains.

- Strong competition: Competition in the cyber security market is intense and many competitors also offer attractive products. CrowdStrike must therefore emphasize even more clearly why its solutions are superior and what unique advantages they offer. Differentiation from the competition will be crucial in order to secure and expand market share.

- Legal risks and lawsuits: Despite existing safeguards and limitations of liability, potential legal disputes pose a significant challenge. Particularly in the USA, where lawsuits are often used strategically, there is a risk of high financial claims that could place a considerable burden on CrowdStrike.

Comparison with the competition

Compared to the competition, CrowdStrike must continue to prove its innovation leadership and the added value of its platform. While competitors are also active in the areas of cloud security and AI-supported solutions, CrowdStrike's success depends on how well it manages to defend its position as market leader and strengthen customer loyalty at the same time.

(the rest)

$S (+2,57%)
$PANW (+0,28%)
$DARK
$FTNT (+2,62%)
$OKTA (+1,3%)