As the COVID-19 pandemic swept the world into uncertainty, the stock market responded to the unprecedented circumstances. One detailed study of activity from January-April 2020 showed that stock market returns declined as confirmed cases rose.
The researchers also found that showed most prominently in the initial days following a confirmed outbreak, then again from 40-60 days after that time.
However, the outlook is not wholly bleak for investors. More specifically, those who invest in cybersecurity stocks could discover that was a sagacious decision.
Remote work situations drive the need for tighter cybersecurity
Businesses did not only begin needing cybersecurity solutions once the pandemic hit. However, since the public health threat led many employers to let or require that people work from home if possible, internet security became even more of a hot topic.
A recent poll found that 33% of the United States’ workforce is in remote roles all the time. Then, a quarter of respondents said they work that way sometimes. Although the survey also found that 41% never work remotely, the statistics show that working from home is rapidly becoming the norm — and COVID-19 had a major part in facilitating that shift.
Stock market analyst, Matthew Carr pointed to some recent evidence of cybersecurity stocks doing well. He cited Okta, SailPoint Technologies and Tenable as each returning better than 40% each this year.
Carr also brought up how some people will never work from traditional offices again. That reality means that corporate leaders have to shift their cybersecurity plans to go outside the workplace and apply to tasks done at home.
Paul De Sisto, Executive Vice President and Managing Director of M&R Capital, had a similar viewpoint. “Research is saying that we’re going to have 8.7% growth this year to US$124 billion just in this one industry [of cybersecurity],” he said. De Sisto continued: “Everything that is going on indicates that this business, which had been growing rapidly, is going to accelerate going forward.”
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