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Tech Rally Shows Signs of Slowing

By James Rundle

 

Good day. The party might not be over for tech stocks, but some see signs that it's starting to wind down.

Megacap tech stocks such as Apple, Meta Platforms, Microsoft and Nvidia have driven rallies in wider markets in recent months. But investor sentiment may be souring on the artificial intelligence trade.

OpenAI CEO Sam Altman compared current market enthusiasm for AI investments to the conditions during the dot-com boom and bust more than two decades ago. Meta froze its AI hiring spree. And a report from one MIT initiative said that AI use at hundreds of companies hasn’t produced significant revenue growth or profits.

Cybersecurity stocks are still producing decent returns, but with many tying their futures to AI, concerns in wider tech markets might prove unsettling.

Read our full story here.

Also today:

  • Netskope files for an IPO.
  • Cellular security tech.
  • Hegseth fires DIA chief.
 
 

 

 

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Cybersecurity Industry

PHOTO: DAVID PAUL MORRIS/BLOOMBERG NEWS

Netskope files for IPO. Cybersecurity vendor has published its prospectus for a public listing on the Nasdaq stock exchange. The company, which has been heavily capitalized through private funding, has been considering a listing since last year, as WSJ Pro Cybersecurity reported in October. (CNBC/WSJ)

 

WSJ Pro CyberIndex

CyberArk and Lumen Technologies moved the most this past week. Last week, Lumen was the biggest climber but fell the most by market close Friday. CyberArk, recently the topic of intense interest because of a proposed acquisition by Palo Alto Networks, rose the most.

The index looks at the top 20 cyber companies by market capitalization. The latest group: Akamai, Check Point, Cisco, Cloudflare, Commvault, CrowdStrike, Cyberark, F5, Fortinet, Leidos, Lumen, Okta, Palo Alto Networks, Qualys, Rubrik, SailPoint, SentinelOne, Tenable, Varonis, Zscaler.

 

National Security

PHOTO: ALEXANDER DRAGO/ASSOCIATED PRESS

Hegseth Fires DIA Chief. U.S. Defense Secretary fired the director of the Defense Intelligence Agency Friday, the latest in a slew of national-security officials dismissed by the Trump administration. In April, Hegseth also fired the director and deputy director of the National Security Agency. (WSJ)

 

Privacy

ILLUSTRATION: ELENA SCOTTI/WSJ, ISTOCK

Age Verification Drive A Battle for Big Tech. Lawmakers want technology companies to limit young people’s access to social media by verifying their age. It’s no easy feat, and it walks a tightrope between safety and privacy (WSJ)

 

About Us

The WSJ Pro Cybersecurity team is Deputy Editor Kim S. Nash, reporter Angus Loten, reporter James Rundle and reporter Catherine Stupp. Follow us on X @WSJCyber. Reach the team by replying to any newsletter you receive or by emailing Kim at kim.nash@wsj.com.

 
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