CIBR: Why Patience Is Required Amid The Cybersecurity Correction

Summary

  • Cybersecurity stocks surged in early 2025 but corrected in mid-February. CIBR ETF returned 16% over six months, outperforming major indices.
  • Despite recent gains, I maintain a neutral stance on CIBR due to a high valuation and uncertain corporate investment in data security.
  • CIBR's portfolio includes major cybersecurity firms and Broadcom, with a high P/E ratio and moderate international exposure, but faces seasonal weakness.
  • I see favorable entry point near $60, especially with upcoming Broadcom earnings and industry conferences.
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Maskot

Cybersecurity stocks caught a major tailwind to begin 2025. It was the momentum trade. High-flying equities surged amid hopes of increased corporate capital spending, deregulation, M&A, and a rebirth of animal spirits. What had been working after the 2024 elections kept working.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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