Hacker Scare Again Boosts Security Stocks Microsoft Woes Highlight Need for Security internet.com Staff
January 30, 2001 - Get ready for a run on Internet security stocks. With two high-profile hacker-related scares making global headlines in the past few days, investors can be expected to snap up shares of 'Net security providers.
That's what happened nearly one year ago, when a series of "denial of service" (DOS) attacks hit Yahoo and several other major Web sites. In one day following news of last February's hacker activities, five different Internet security stocks climbed more than 20%, with one (WatchGuard Technologies) gaining 46%. Again, all in a single trading session.
Granted, last February was - literally and figuratively - a different millennium for Internet stocks, which were still soaring as investors remained blissfully unaware of the large bear lurking around the corner.
But already, in the wake of Microsoft's widely publicized DOS outages last week, 'Net security stocks are on the rise. In Monday's trading alone, five different Internet security companies saw their shares post double-digit gains.
