As we've written before here and here, the impact of the Russian-Ukrainian war is not only visible on the battlefield, but also in the online world, where cyber warfare plays a significant role. This has significantly enhanced the role of cyber defence providers worldwide, which also affects their stock market performances.
In the weeks following the outbreak of the war in February, as virtual attacks multiplied, investors turned their attention to cyber defence companies, leading to an almost 10 percent rise in stock prices. Since then, investor interest has remained strong, despite cybersecurity stock prices falling by an average of 2.1% in the third quarter. Even so, the cybersecurity industry outperformed the broader technology sector in an economic environment where high inflation, rising interest rates and fears of recession have fuelled market volatility.
The strength of the cyber security market is partly because companies are realizing that digital transformation can have catastrophic consequences without any security measure, which is why they are increasing their budget for cyber protection. In the third quarter, venture capitalists also showed strong interest in cybersecurity and risk management. Compared to the second quarter alone, there was a 16.1% increase ($246 million) in blockchain security. Experts say this indicates growing investor interest in technologies focused on privacy, cybersecurity and fraud prevention.
Vivetech entered the stock market in May, the first from the Hungarian cybersecurity market, which is now represented on the Budapest Stock Exchange. The company's stocks are performing well. As an expert in IT security, Vivetech helps companies to build their own cyber defence systems, which can significantly increase their competitiveness compared to other companies.