Editor's note: When you think of pirates, you probably imagine a bearded bandit forcing a tied-up victim to walk the plank. But as John Evelius from our corporate affiliate Chaikin Analytics explains, modern pirates use cyberattacks to rob their targets instead of swords and cannons. This new class of thieves demands new kinds of defenses. And one cybersecurity firm is separating itself from the pack...
Last summer, a crude-oil supertanker heading for Texas found itself at the mercy of pirates...
For about 30 hours, the vessel lost communications, leaving its crew cut off from the outside world.
For all intents and purposes, the pirates had boarded the ship – but there were no bad actors to be seen on deck...
In fact, the "pirates" were hackers accessing the ship's systems remotely from some other part of the world.
They got far enough into the systems to reach the vessel's propulsion controls.
Folks, this is our new shipping reality. Modern pirates can hack into a ship remotely... cut its crew off from outside help... and potentially send it off course for maximum damage.
To be clear, nothing terrible happened in this instance...
But experts expect the frequency of maritime cyberattacks to increase.
You see, modern cargo ships rely on computer systems to run their engine, steering, navigation, and cargo operations.
A lot of the equipment was designed decades ago – long before cyberattacks were a daily reality.
And shipping companies aren't the only victims...
Power plants, pipelines, factories, and hospitals all depend on computerized equipment that wasn't built to withstand modern attacks.
Replacing these outdated systems is enormously expensive. In many cases, it would mean shutting down operations for days... which simply isn't an option.
So businesses are spending heavily to protect the systems they already have. Worldwide spending on information security now runs more than $200 billion a year.
All of that money flows to a handful of cybersecurity providers. And one of them stands out right now...
This Company Is Safeguarding Expensive AI Models
I'm talking about Check Point Software Technologies (CHKP).
Check Point is one of the biggest names in cybersecurity. And in many ways, it started the whole industry...
You see, one of its founders is widely credited as the inventor of the modern-day firewall.
This is the technology that stands between a company's network and the open Internet.
That invention made Check Point a fixture in server rooms around the world. Today, its software protects more than 100,000 organizations globally.
But Check Point isn't relying on old inventions to power modern-day growth...
The company is chasing the fastest-growing threat in the world right now – attacks aimed at AI itself.
Check Point has partnered with chip titan Nvidia. Together, they have built security solutions that run inside massive AI factories.
So as the world races to develop AI, Check Point will be in position to protect it.
And with Check Point's new "Firewall as a Subscription" service, the company has a fresh source of steady, recurring revenue.
This showed up in Check Point's second-quarter earnings report. The company's subscription business grew 12% year over year to roughly $330 million.
Earnings per share topped Wall Street estimates – rising 8% year over year to $2.55.
And right now, the Power Gauge gives Check Point a "bullish" rating. The Power Gauge is a tool we use at Chaikin Analytics to analyze the markets. It gathers investment fundamentals and technicals into a simple rating ranging from "very bullish" to "very bearish."
Our Chaikin Money Flow indicator – which tracks investments from the biggest names on Wall Street – is firmly in the green. This tells us that the "smart money" has been steadily accumulating shares.
Take a look...
Folks, Check Point is a leader in an industry the world can't do without. And the Power Gauge clearly sees strength "under the hood."
Keep an eye on this stock.
Good investing,
John Evelius
Editor's note: Chaikin Analytics founder Marc Chaikin believes the midterms have set off a $10.3 trillion market anomaly that could make or break millions of Americans' retirement accounts. This time around, the "Election Aftershock" could be supercharged by AI spending... And on Wednesday, November 11, he'll reveal all the details in a free online event. Attendees will get a stock recommendation just for tuning in – secure your spot now.
Further Reading
Modern problems require modern solutions. In the cybersecurity space, sophisticated AI agents are finding cracks in defenses... and forcing companies to adapt to deal with them.
After months of seemingly endless political ads and mailings, the midterm elections are finally in the books. And that means investors can focus on what has historically been the best year of the election cycle for stocks.
