Cybersecurity stocks rally as global hackings start to impact corporate bottom lines. Cybersecurity stocks like Fire. Eye (FEYE), Barracuda (CUDA), Symantec (SYMC) and Palo Alto Networks (PANW) rallied Friday, as snack food and beverage giant Mondelez International (MDLZ) became the latest victim of a cyber attack. The company said it was hit with an attack on June 2.

What made this call unusual is that the company quantified exactly how much the attack hurt them: Its preliminary estimate of the impact indicates a 3 percent slice off its revenue growth rate for the quarter. Unlike the recent Wanna. Cry ransomware attack, this hacking, as well as similar ones reported by Reckitt Benckiser and others, appear to be designed to simply cause as much destruction as possible. And analysts say it's only going to get worse.

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In a report yesterday to clients, Key. Banc noted that security concerns will increase in importance as companies shift to the cloud and that 2. Cyber crime in 2. DDo. S) attacks. 78 percent increase in phishing sites. Source: Key. Banc. There is plenty of room for growth.

The cybersecurity business is still relatively small: Key. Banc notes it is only $3. It's remarkably fragmented: Symantec's enterprise business is the largest player, with only 7 percent market share.

In part, that's because there are many different parts to the security business that are not served by all the players: firewall, identity & access management, data loss prevention, messaging security, etc. Widely reported events like the Wanna.

Cry ransomware attack and the . Key. Banc notes that a . That means more business for companies like Box and Okta.

Most importantly, business appear to be shifting priorities. In the past, prevention was the priority, with detection and correction less important. Nforce 650I Sli Bios Update.

In 2. 01. 4, 8. 0 percent of enterprise security budgets were devoted to prevention, with only 1. That is now reversing: Key. Banc estimates the 6. The big question, according to Ilya Kundozerov at Morningstar, who covers cybersecurity stocks, is this: How much of this negative news will get translated into top- line growth for cybersecurity companies? In the past, similar events have led to an increase in revenues. Fire. Eye, for example, is extra sensitive to these kind of events because they are often the company that gets the first call. Kunderozerov says it's still too early to tell if Wannacry and Petya will generate significant revenue growth.

What is remarkable to Kunderozerov is that many of these recent attacks were not due to amazing, sophisticated cyber hacks: They were due to the failure of companies to simply keep their software updated. Nothing has happened to these systems, but now it's payback time.

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These legacy systems need to be completely isolated, or patched, or migrated to new software.

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