The United States is under digital attack. Now the government is responding, and this is a huge opportunity for investors.
The Biden administration announced Friday that it wants to help fill 600,000 vacancies in the public and private sector to secure the nation’s digital infrastructure.
Investors should consider buying Accenture (ACN) And Palantir (PLTR),
Despite mounting attacks on fuel transportation infrastructure, the electrical grid and State Department officials, lawmakers have been reluctant to step up cybersecurity. The Commerce Department’s job-tracking database shows that nearly 600,000 cyber job openings remain unfinished, according to a report good Posted in CyberSeek, an industry advocacy group.
President Biden met with officials in August Amazon.com (AMZN), International Business Machines (IBM), Alphabet (GOOGL), Microsoft (MSFT) And Apple (AAPL), Altogether the companies pledged $30 billion and training for thousands of new cybersecurity professionals.
The outreach amounted to a dent for the White House.
President Biden has been battling big technology at every opportunity since 2020. His administration has gone after the nation’s biggest tech companies for alleged antitrust breaches and unfair practices. However, the stakes are rising and he needs help.
The Colonial Pipeline, a 5,500-mile pipeline network that supplies gasoline and other fuel products to the eastern states, was closed in May when a successful ransomware Attack on internal systems. The pipeline network transports 100 million barrels per day. Gasoline futures were up 3% and held steady for most of the year.
After two months, when the Energy Department focused on the power grid said That bad actors currently have the potential to shut down the US power grid. Energy Secretary Jennifer Granholm said the private and public sectors must come together to thwart cyber attacks.
and Reuters informed of Last week at least nine State Department officials have had their iPhones hacked by poachers who deployed sophisticated spyware.
It’s time to take action against cyber attackers. This is the diffraction point.
Investors should take a two-pronged attack, focusing on advisors and system builders.
Accenture (ACN) is a professional service company. Its consultants are spread across the globe, including many of the largest global brands. These workers are making genuine software and they are familiar with the rigors of cyber security.
As attackers become more sophisticated and governments begin to act collectively, business will only grow at Accenture. Tax incentives and new programs will make it easier for large customers to enhance their cyber security.
Accenture currently has 6124,000 employees and revenues of $50 billion. Cyber security is currently a $4 billion annual business for the company.
More importantly, the business is a steady producer with solid margins. Sales grew 24% year-over-year to $13.4 billion during the fiscal fourth quarter. Operating margin was 14.6%, a . According to filing in the Securities and Exchange Commission.
Palantir got his start building system for the Central Intelligence Agency. In fact, the secret organization was one of Palantir’s original investors. Since that time executives have shifted business to work with other Western governments and some corporate clients.
Palantir’s focus is data, databases and artificial intelligence systems. The Denver, Colo.-based company runs its custom algorithms against diverse sets of data collected from both private and public sources, then the software presents the findings in an easy-to-analyze format.
The simplicity of using these systems is attracting a lot of attention from the public and private sector.
Executives said in July that third-quarter revenue reached $392 million, up 36% year-over-year. Although the company is still unprofitable as division managers are enthusiastically hired, gross profit margin has increased to 82%, and enterprise sales now reach 46% of total sales. Free cash flow during the first nine months was $320 million.
Politics is usually irrelevant to the stock market. Politicians make headlines, yet their actual impact on corporations is negligible. It is different. Cyber security has become a major cost to the public and private sectors. There is real political will for change.
Investors may not think of Accenture and Palantir when it comes to cyber security, yet these businesses are sure to benefit well into 2022 as securing digital infrastructure becomes a major theme.