by Ian Cooper

Cyber criminals struck again.

This time, they hit Microsoft (MSFT).

Over the last few days, a Russian intelligence group targeted the e-mail accounts of Microsoft employees, including its top executives starting in November. While the attack didn’t impact operations, it still shows a bad vulnerability that needs to be addressed.

While bad news for Microsoft, it may be great news for cyber security stocks, like Palo Alto (PANW) – which just hit a new high above $350. 

As noted by CNBC, JPMorgan added that the breach “could drive greater levels of caution with regard to relying too heavily on Microsoft for security.” The analysts said that cybersecurity software vendors that “compete with Microsoft in their core markets will benefit,” including Palo Alto Networks.

In addition, the US SEC’s new disclosure rules – which can be found here – could be another strong catalyst for cybersecurity stocks, like PANW. 

As also noted by CNBC, “Corporations are required to share more information with investors about cybersecurity breaches and what’s being done to address them. Increased cyber spending in the sector — and subsequent demand for Palo Alto’s offerings — could occur as companies take an even more cautious approach to protect their data and systems.”

Or, if you want to diversify with more cybersecurity companies, consider an ETF such as:

Global X Cybersecurity ETF (BUG)

“The Global X Cybersecurity ETF (BUG) seeks to invest in companies that stand to potentially benefit from the increased adoption of cybersecurity technology, such as those whose principal business is in the development and management of security protocols preventing intrusion and attacks to systems, networks, applications, computers, and mobile devices,” says Global X.

iShares Cybersecurity and Tech ETF (IHAK)

According to iShares, “The iShares Cybersecurity and Tech ETF seeks to track the investment results of an index composed of developed and emerging market companies involved in cyber security and technology, including cyber security hardware, software, products, and services.”