Cyber stocks soared on Tuesday as investors reacted to news of DeepSeek registrations being halted by an attack on its service. That’s hot news as DeepSeek majorly disrupted the artificial intelligence (AI) sector after releasing a new model more powerful than OpenAI’s ChatGPT. It also did so with lower development costs, shaking investor confidence in the AI market.
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
However, news of a cyber attack on DeepSeek prompted investors to flock to cybersecurity stocks in hopes they’ll gain more business by protecting AI development companies. That’s sound logic and it explains why there was such an interest in the sector yesterday.
Which Cyber Stocks Rallied Yesterday?
Four cyber stocks rallied the most on Tuesday. Cloudflare (NET) saw the biggest gains with a 10.68% increase but is slipping 0.36% this morning. Shares of Zscaler (ZS) stock closed yesterday up 7.03% and are down 0.04% in pre-market trading. Palo Alto Networks (PANW) stock gained the least at 1.92% but is still rising today with a 0.42% increase.
It also bears mentioning that Crowdstrike (CRWD) underwent a major rally yesterday too. That’s due to the company securing a perfect score on its latest SE Labs ransomware test. This sent shares 9.35% higher yesterday but they are down 0.66% this morning.
Which Cyber Stock Is the Best?
Turning to the TipRanks stock comparison tool, investors get all the details on these cyber stocks. Cloudflare, Zscaler, and Palo Alto Networks each have a Moderate Buy rating while CrowdStrike has a Strong Buy rating. However, only Zscaler and Palo Alto Networks have positive upsides. The growth potential of ZS and PANW stocks are fairly close but the latter has the better P/E ratio at 50.29. Going by the P/E ratio, investors will also note that CRWD is a solid investment at 807.03.
