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Summary
- Remote working and rapid adoption of digitalization pushed companies to invest heavily in security solutions
- Blackberry stock returned 197 per cent in the last one year.
- Projected gross profit for Cloudflare in 2022 is around US$593
Building safe internet has been a long-term goal for many tech companies in the business of cybersecurity. Well, the internet of today is much safer than it used to be a decade back.
With more tech and non-tech companies adopting remote working as a result of the COVID-19 fallout, issues of cybersecurity are staring at companies like never before.
The adoption of cloud-based technologies has given explosive growth to the cybersecurity industry in which Cloudflare and BlackBerry are some of the names to reckon with.
Let us take a closer look as to why these two stocks must be closely watched:
Cloudflare Inc (NYSE: NET: YUS)
Based out of the United States, Cloudflare has developed solutions and cloud-based platforms that are used by businesses for securing the network.
Started as a software company to find the source of email spam, today Cloudflare serves and protects data from 200 cities in more than 100 countries around the world.
The stock has outperformed both the market segment and the industry in each of these periods, returning over 257 per cent in the last one year.
The fiscal year 2020 saw a 50 per cent increase in revenues of both Q4 and the full year amounting to US$126 and US$431 million respectively.
The net loss for 2020 stood at US$ 119.4 million which is 11 per cent more than the 2019 fiscal.
However, in the 2021 outlook, the company projects a total revenue of ~US$593 million.
Image: Pixabay
Blackberry Ltd (TSX:BB)
Blackberry, the former phone-maker, has transformed into end-to-end security and communications software provider.
The stock price return is 197 per cent and 116 per cent over the last one year and six months, respectively. This indicates the strong position of the company in the technology sector especially in the area of cybersecurity.
This high return on stock price is attributed to flourishing business during the period of lockdown as it compelled more organizations to adopt remote working which compels which in turn necessitates the adoption of end-to-end security.
For the nine months ended November 30, 2020, the adjusted revenue stood at US$704 million while the operating expenses stood at US$436 million.
With the positive adjusted EBITDA of US$132 million, a growth investor with long term objective must-watch BlackBerry closely.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.
