> ## Content Index > Fetch the complete content index at: https://us.mikirduit.com/llms.txt > Use this file to discover other available public pages before exploring further. # Cyberattacks Are Surging. Is It Time to Buy Cybersecurity Stocks? - URL: https://us.mikirduit.com/cyberattacks-are-surging-is-it-time-to-buy-cybersecurity-stocks/ - Published: 2026-10-19T14:06:53.000Z - Updated: 2026-10-19T14:06:53.000Z - Description: Cyberattacks have surged throughout October 2026, fueled by agentic AI, and could drive higher security budgets across governments and corporations. We screened the sector on technical factors and found four cybersecurity stocks worth watching, along with a caution on Varonis after its buyout news. - Author: Surya Rianto - Tags: Stock Insight, Stocks **Mikirduit –** Cyberattacks have climbed throughout October 2026, from the October 8 attack on German outlet Magdebunger News to incidents in South Korea and Japan. That raises a question for investors: could this be an opportunity in cybersecurity stocks? ### Key Takeaways - **Rising cyberattacks could lift security spending.** Attackers are using agentic AI to breach corporate defenses faster, which may push financial institutions, governments, and large companies to spend more on cybersecurity. This gives the sector a different narrative from AI-related stocks. - **Varonis (VRNS) is a trap for chasers.** The stock jumped after Proofpoint’s $6.3 billion buyout offer, but the deal price is locked at $49.75 per share, near its $48.72 close on October 16\. With delisting expected in the first half of 2027, upside is capped. - **Cybersecurity names are cash-rich but mostly unprofitable.** Palo Alto Networks leads with $4.11 billion in free cash flow, followed by CrowdStrike and Cloudflare. Upfront subscription payments and non-cash GAAP charges explain much of the gap between losses and cash flow. The spike in attacks coincides with the rise of agentic AI, which attackers are using to breach corporate defenses faster than ever. That could push financial institutions, governments, and large companies to boost their security budgets. This gives cybersecurity stocks a different narrative from AI-related stocks, from infrastructure providers to service providers. Those names are under pressure after Anthropic’s and OpenAI’s results came in below expectations. [AI Stocks Slide: Buying Opportunity or Warning Sign?The Nasdaq-100 fell 2.5% as credit stress at CoreWeave, sticky inflation and slowing growth at OpenAI and Anthropic rattled AI stocks. Some names now look cheap, but is it a real buying opportunity or a trap? Here’s what’s driving the drop and what investors should watch next.![](https://us.mikirduit.com/content/images/icon/Mikirduit-e6936f41-4a1b-4ac0-bf78-095d8d0df2e6.jpg)Mikirduit USSurya Rianto![](https://us.mikirduit.com/content/images/thumbnail/expectattion-nasdaq-down-e1202eeb-024f-41af-bf85-ff543bb364bc.jpg)](https://us.mikirduit.com/why-ai-stocks-slid-on-oct-16-and-what-investors-should-do-next/) ## Which Cybersecurity Stocks Look Interesting? We analyzed several cybersecurity stocks on technical factors and found four that look attractive for the short term. #### The Anomaly: Varonis Systems (NASDAQ: VRNS) One stock stands out. Varonis Systems Inc. (NASDAQ: VRNS) rose sharply on October 16, 2026, while other cybersecurity stocks pulled back. The jump followed news that Proofpoint plans to acquire the company for $6.3 billion. The deal values Varonis at about $49.75 per share, slightly above its October 16 close of $48.72. The acquisition is expected to close in the first half of 2027, after which VRNS will be delisted from Nasdaq. Investors chasing the rally should keep in mind that the deal price is locked in at $49.75 per share. If you are still holding as the delisting approaches, you may be forced to sell at that price, even if you bought higher. Before the news, our technical view was to watch VRNS in the $47.30 to $50.40 range, with a stop-loss at $44.70 and a target of $64\. We preferred a “buy on support trendline” approach, because rising volume suggested the uptrend could continue. With the deal price now fixed at $49.75, and the delisting risk that comes with it, we think chasing the stock is risky. The exception is a short-term trade aimed at a quick profit, with a firm stop-loss in place if the target isn’t reached by the end of December 2026. #### Other Cybersecurity Stocks With Attractive Technical Setups Besides VRNS, we are also watching three other names: - **SentinelOne Inc. (NYSE: S):** Automates the protection of computers and systems, and has expanded into cloud, data, and AI security. - **Palo Alto Networks Inc. (NASDAQ: PANW):** Offers a comprehensive, end-to-end security platform. - **Cloudflare Inc. (NYSE: NET):** Protects network entry points and manages traffic for websites and applications. CrowdStrike Holdings Inc. (NASDAQ: CRWD) is also one of the largest players in the sector. It monitors activity on computers and systems and detects and stops potential intruders. However, its short-term technical setup still looks risky. ## The Financial Picture: Mostly Unprofitable, but Generating Cash One notable pattern across these companies is that most are still reporting net losses. Even CrowdStrike, which has turned profitable, earned only $5.3 million. Still, most of these companies already generate free cash flow: - **Palo Alto Networks:** $4.11 billion, the largest (fiscal 2026, August 2025 to July 2026) - **CrowdStrike:** $845.9 million, second largest (first half of fiscal 2027, February to July 2026) - **Cloudflare:** $140.5 million, third largest (first half of 2026, January to June) The gap between losses and cash flow comes down to accounting. Customers pay for subscriptions upfront, so cash arrives first, while revenue is recognized gradually over the contract term. On top of that, GAAP earnings include non-cash charges such as stock-based compensation and amortization. ## Management Guidance: Who Is Targeting the Most Growth? Based on management guidance, Cloudflare is the most aggressive, targeting revenue growth of 32%. Palo Alto Networks is targeting 23% to 24%, and SentinelOne is targeting about 20%. On operating margin, Palo Alto Networks has set the most ambitious target at 29.5%, followed by Cloudflare at 15% to 16% and SentinelOne at 10% to 11%. #### Key Caveats for Each Stock - **Cloudflare:** Current remaining performance obligations (RPO), which measure contracted revenue yet to be recognized, grew 35%, and large-customer growth reached 27%. However, the company does not break out its Workers platform from its cybersecurity business, so it is hard to tell exactly what is driving performance. - **Palo Alto Networks:** Demand is strong, with current RPO up 34% and bookings up 40%. But its fiscal 2027 guidance blends assumptions about acquisitions with growth from the existing business, which makes the organic picture less clear. - **SentinelOne:** Annual recurring revenue (ARR) grew 22%, a sign of healthy demand. But net new ARR grew only 4%. Net new ARR is the ARR added from new customers and expansions by existing customers, minus lost revenue from customers who cut spending or leave. ### Our Technical View **SentinelOne (S)** - Buy range: $19.30 to $20.30 - Stop-loss: $18.60 - Target: $24 - View: Wait and see near trendline support. **Cloudflare (NET)** - Buy range: $296 to $310 - Stop-loss: $276 - Target: $362 - View: A short-term buy on trendline support. Consider entering once a bounce begins. **Palo Alto Networks (PANW)** - Buy range: $327 to $345 - Stop-loss: $313 - Target: $425 - View: High risk. A speculative buy once a bounce starts. From a business standpoint, Palo Alto Networks has the scale of its large contracts, Cloudflare has a solid and established user base, and SentinelOne is a proxy for the cybersecurity theme that could grow aggressively, though it still needs to prove it can deliver and improve. ## Sign up for Mikirduit US Independent Stock Research, Earnings Analysis, and Valuation for Everyday Investors Subscribe Email sent! Check your inbox to complete your signup. No spam. Unsubscribe anytime.