A strategic acquisition in the cybersecurity industry could pay off big for one small company.
We’re living in a digital world.
Very few businesses keep paper records anymore. The advent of high-capacity and cloud storage has allowed companies around the world to easily move their records onto digital platforms.
And while the digital revolution has been incredibly beneficial – allowing organizations to easily access and share data – there is a major challenge that has come with it.
With more and more sensitive information being stored online, incidents of hacking to steal that data have been on the rise for years.
In response, the cybersecurity industry – which strives to protect against data breaches – has been booming. And with hackers showing no sign of slowing down, neither will the growth and profits of the top cyber security firms.
And a recent acquisition for one under-the-radar cybersecurity company, Rapid7, Inc. (RPD), could lead to big gains for its shareholders.
Where’s the money?
The year 2020 showed us an alarming trend.
In total, more than 12 billion records were breached last year. The number of ransomware attacks increased by 60%.
Each instance of a data breach costs the affected party more than $3.8 million on average. Even more alarming is that fact that the average time to identify those data breaches in 202 was 207 days.
In response, global cybersecurity spending is expected to increase to $60.2 billion this year.
And Rapid7, Inc. (RPD) is making a big move to not only prevent data breaches, but also cut down on the time needed to identify a breach.
The merger could mean big profits for savvy investors.
Let’s take a look.
How do I get some?
At a valuation of $4.8 billion, Rapid7, Inc. (RPD) is a relatively small cybersecurity firm when compared with the giants of the industry like McAfee corp. (MCFE) and their $10.6 billion market cap.
But this small cybersecurity firm is making big moves.
Rapid7 recently announced that it has acquired Velociraptor, a leading digital forensics and incident response company. Velociraptor’s technology allows users to easily collect digital evidence of data breaches and monitor sensitive data storage.
Velociraptor’s community-based approach allows users to share data on breaches to effectively monitor and hunt for malicious activities.
Rapid7 has announced that it plans to continue to build upon that community to enhance its cybersecurity capabilities and incident response times.
With more and more companies looking for innovative solutions to the growing hacking problem, I believe that companies that can offer unique, effective services like Rapid7 are poised for huge growth over the next several years.
Profits Have Already Begun to Roll In…
Subscribers of my Super Options research service have already been given a chance to rake in a big win from Rapid7.
In late March, the Super Options Tracker identified the building momentum for RPD stock. And as I’ve seen time and time again, options trades on these kinds of movements can deliver unbelievable profits.
In just one month, the trade on RPD which I recommended gave subscribers the opportunity to cash in a massive 109% gain!
And that’s just one example of the many windfalls investors had the chance to collect.
I have my eye on even more big opportunities in the coming weeks and months, so click here now to make sure you’re in the know.
In the Spotlight: A Buying Opportunity on MSFT?
Microsoft Corporation (MSFT) released its latest earnings report on Tuesday.
And despite revenue and EPS topping expectations, MSFT stock traded lower on Wednesday.
While Microsoft appears to be in great shape from a fundamental standpoint, its dip yesterday could be the result of over-hype.
Microsoft stock has been bid up by 11% during the last month as investors pile in ahead of earnings. As such, many were looking for an even bigger beat to send shares higher.
But with Microsoft exceeding estimate in all three of its major business segments, yesterday’s down move could just be a great opportunity to buy MSFT shares at a discounted price. Keep a watchful eye on Microsoft shares. This is a company that continues to outperform, and should be bought on the dips.