Why Are Cybersecurity Stocks Falling Today

Cybersecurity stocks, including Check Point Software Technologies Ltd CHKP, Cloudflare, Inc NET CrowdStrike Holdings, Inc CRWD, since the former released its mixed first-quarter results today.
Check Point reported first-quarter FY23 revenue growth of 4% year-on-year to $566.2 million, missing the consensus of $568.9 million. Adjusted EPS of $1.80 beat the consensus of $1.74.
"The economic slowdown has resulted in extended product sales cycles while recurring revenues were healthy and reached over 80 percent of total revenues for the first time," said Gil Shwed, Founder & CEO of Check Point Software Technologies.
Last week, Cloudflare reported Q1 adjusted EPS of $0.08, which came ahead of the $0.03 estimate on revenues of $290.2 million, which trailed the $290.72 million consensus.
The company said increasing macroeconomic uncertainty over the first quarter resulted in a material lengthening of sales cycles and a significant backend-weighting of linearity.
Also on Monday, Federal Bureau of Investigation Director Christopher Wray pleaded for more money from Congress, citing Chinese hackers vastly outnumbered U.S. cyber intelligence staff.
If each of the FBI's cyber agents and intel analysts focused exclusively on the China threat, Chinese hackers would still outnumber FBI Cyber personnel by at least 50 to 1, Wray said in prepared remarks for a budget hearing, CNBC reports.
The FBI requested $63 million to help beef up its cyber staff with 192 new positions.
Wray also emphasized that countries like Russia, Iran, and North Korea pose significant cybersecurity concerns.
Price Actions: CHKP shares traded lower by 5.21% at $120.73 on the last check Monday. NET shares traded lower by 5.25% at $44.58, and CRWD shares traded lower by 1.60% at $118.14.
Photo by Darwin Laganzon via Pixabay

Market News and Data brought to you by Benzinga APIs

Comments

Earnings Calendar

Never Miss Important Catalysts

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga