Shares of cyber security solutions providers Fire Eye Inc. (FEYE) and CrowdStrike Holdings Inc. (CRWD) jumped 52.31% and 43.61% respectively over the past month. A larger portion of that increase during the month came after the news of hacking of the software infrastructure firm SolarWinds Corporation’s (SWI) ecosystem. Shares of IT outsourcing service provider firm fell -34.29% over that period
Unknown attackers broke into the software for tracking the SolarWinds network in mid-December. Around the same time, using a proven loophole that hackers used for other attacks earlier, the attack was carried out.
The FireEye service identified the incident. The incident was a catalyst of success for FireEye and another cybersecurity service provider, CrowdStrike (+9.99%), in share prices on December 18. FireEye surged 33.73% while CrowdStrike added 9.99% on the day whereas shares of SolarWinds declined significantly by 19.43% around the same moment.
Only 50 organizations have been hit by the cyberattack, according to early figures, but some of them were US government organizations. When government departments and vital infrastructure installations were hacked, this created extra resonance. In the Microsoft Azure cloud, malicious program code was also found. Around the same time, the cyberattack happened at a time when many of the staff of the targeted organizations was working remotely, and it was highly necessary to stabilize IT networks.
However, it is unlikely that specifics about what information was compromised and which departments and organizations were compromised would become public in the near future, considering the ongoing coverage of the incident. It classified the briefing by the FBI and other intelligence agencies interested in the probe. Around the same time, the need for IT services will not vanish and the organizations affected will have to change themselves digitally. Thus, based on the picked ticker, either the perpetrator or the recipient, the latest event might be a reasonable opportunity to sell or join.
Shares of the companies remained stable at final trading of the year with FireEye, Inc. (FEYE) at +0.04% to $23.06, CrowdStrike Holdings, Inc. (CRWD) at +0.73% to $211.82 while SolarWinds Corporation (SWI) ended the trading a bit down -0.13% at $14.95.