Cybersecurity Stocks With Ties to Israel Are Under Pressure as War Unfolds

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The country is home to 33% of the world's unicorns in cybersecurity, the Israel National Cyber Directorate said last year.

Most U.S.-listed security-software stocks with notable operations in Israel dipped into the red as the country battles the Palestinian militant group Hamas.

The BlueStar Israel Technology exchange-traded fund , ITEQ which tracks Israeli cybersecurity companies and other tech names, was down 3.4% on Monday. Israeli tech companies “will be losing many of their key employees to the war effort, but these same companies have demonstrated extraordinary resilience in past conflicts,” wrote Steven Schoenfeld, CEO of MarketVector Indexes.

Identity-security company CyberArk Software also based in Israel, has 71% of its so-called long-term assets there. The category can include fixed assets such as equipment, as well as intangible assets such as copyrights and software. Its stock fell 5.3%. Many companies Palo Alto Networks has acquired are based in Israel, including Cider and Cyber Secdo, but just 12% of the parent company’s long- lived assets are there. The stock was down 0.3% at open but had recovered for a gain of 2% by mid morning.

 

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