Cybersecurity Stocks Rally on IBM Warning; CrowdStrike Leads With 12% Gain, Surges 47% in Retail Investor Poll

Cybersecurity stocks surged on Tuesday following a warning from International Business Machines Corp. (IBM) that enterprise spending priorities are shifting toward cybersecurity. According to Stocktwits, CrowdStrike Holdings Inc. (CRWD) led the climb with a 12% gain at close, while Zscaler Inc. (ZS) rose more than 7%, Palo Alto Networks Inc. (PANW) also gained nearly 7%, and Cloudflare Inc. (NET) added more than 4.5%. IBM stock fell over 25% following CEO Arvind Krishna's comments and preliminary earnings that missed market expectations.

In a Stocktwits poll asking retail traders which cybersecurity stock would post the best performance over the next 12 months, nearly half the users picked CrowdStrike as the clear winner with 47% voting in its favor. Palo Alto was next with 22%, while Zscaler and Cloudflare received 18% and 13% of votes, respectively.