With a string of data breaches threatening the corporate America and user privacy, Check Point Software Technologies Ltd. (NASDAQ:CHKP) shares have soared with an anticipated increasing in its security-service demands.
The string of data breach incidents started with JPMorgan Chase & Co. (NYSE:JPM) when the company reported a data breach to the state, as reported by the Department of Revenue. The primary affect was on the users having pre-paid debit cards issues by JPMorgan Chase & Co. (NYSE:JPM) for unemployment benefits and income tax refunds primarily paid by the Louisiana Workforce Commission and other agencies.
Following JPMorgan Chase & Co. (NYSE:JPM), the internet was full of nude celebrity photos in first week of September and the involved group cite Apple Inc (NASDAQ:AAPL)’s iCloud as the source of information. Apple Inc (NASDAQ:AAPL) later ruled out any data breach from its servers or iCloud appand positioned a new security alert system for the users.
Amid all of these incidents, Check Point Software Technologies Ltd. (NASDAQ:CHKP) reached an all-time high of $71.99 at the end of day. Check Point Software Technologies Ltd. (NASDAQ:CHKP) is the second-largest network security company in the world and the company provides services to defend data breach attacks similar to these incidents.
According to Bloomberg survey, Check Point Software Technologies Ltd. (NASDAQ:CHKP) is likely to grow its sales to $1.48 billion this year with a 6.3% growth from last year. The company has been able to keep up with the latest security trends and it has the services to fight off security threats, provide protection for cloud infrastructure and offer data security to data centers, as said by Jonathan Ho, William Blair & Co.’s analyst. He further added that in light of the security attacks at JPMorgan Chase & Co. (NYSE:JPM) and Apple Inc (NASDAQ:AAPL), companies are likely to increase their spending on information security.
This article has been written by Prakash Pandey.