Cybersecurity stocks are soaring as a vicious new form of malware has left thousands of computers grounded.
Many cyber-security companies saw their stocks rally on Wednesday as the “Petya” ransomware program immobilized more than 12,000 computers from companies around the world in order to extort money from their owners, according to numbers from Microsoft.
After halting its shares earlier Wednesday, FedEx announced its TNT Express subsidiary was cyber attacked, disrupting operations and communications systems. FedEx said there was no data breach.
“It’s a very different piece of work here, and security researchers and companies are still scrambling about how to fix this,” CNBC’s Arjun Karpal said on Wednesday.
As the virtual attack spreads – security firm McAfee said the virus has reached multiple continents – cybersecurity stocks have spiked by as much as 4 percent or more.
Root9B, the number-one-ranked company on a Top-500 list from Cybersecurity Ventures, rose 4.3 percent on Wednesday, to $8.87 per share. Email-management software company Mimecast’s stock rose 4.06 percent, to $26.63 per share.
Other cybersecurity stocks have made more modest gains in the wake of the cyberattack. FireEye is up 1.63 percent, to $15.66 since Wednesday’s opening, while Barracuda Networks rose 1.5 percent, to $22.94 and Check Point Technologies rose 0.89 percent, to $112.11. PureFunds ISE Cyber Security ETF rebounded 0.83 percent to $30.29 after falling more than 2 percent since Monday.
— CNBC’s Arjun Karpal contributed to this report.
Source: Tech CNBC
Cybersecurity stocks rally as ransomware attack targets thousands of companies