OAKLAND, Calif. (Reuters) – Cybersecurity providers including FireEye Inc and Microsoft Corp could not prevent a huge network breach disclosed this month by numerous U.S. agencies and companies, yet their shares are soaring for a second straight week.
The months-long penetration exposed weaknesses in security tools as well as network management programs, most notably SolarWinds Corp’s Orion software widely used to oversee networks.
Recalls and scandals affecting products such as automobiles, food and toys tend to hurt shares across an industry, as investors brace for broad declines in consumer confidence and sales, according to two experts who have studied such scenarios.
But the spillover from the cybersecurity scare has been different. Wall Street is betting that governments and businesses – having invested years in moving to digital infrastructure – will only accelerate purchases of the latest IT tools.
