Investors needs to own cybersecurity stocks: Strategist

With more things moving to the cloud and the use of artificial intelligence on the rise, investors should be "long-term bullish" on cybersecurity stocks, Tematica Research Chief Investment Officer Chris Versace tells Yahoo Finance Live. As Versace describes it, there is "almost a constant one-upmanship between the attackers and the protectors" and as a result investors "have to own cybersecurity."

To find out how to Versace recommends playing the space, watch the video above.

Click here to watch the full interview on the Yahoo Finance YouTube page or you can watch this full episode of Yahoo Finance Live here.

Editor's note: This article was written by Stephanie Mikulich

Video Transcript

RACHELLE AKUFFO: So then Chris, as you look at AI, of course, it goes hand in hand with cybersecurity. Obviously, been on the minds of regulators. We saw that snafu with the SEC, their Twitter account, their X account being hacked with that false announcement. A simple two-factor authentication apparently could have prevented some of that. But what does that tell you about how much cybersecurity should also be in people's portfolios as they also balance some of these big tech stocks that are focused on AI?

CHRIS VERSACE: We have said and we will continue to say the following, as we move deeper and deeper into this increasingly connected world, which will only accelerate because of the use of AI, there are a number of reasons to be long-term bullish on cybersecurity, but also data privacy as well.

And I would say, look, there's a bunch of high profile cybersecurity stocks out there; Palo Alto Networks, CrowdStrike, F5, and the like. For a lot of folks, the easier way might simply be to own an ETF, whether it's the HACK ETF, the CIBR ETF, H-A-C-K or C-I-B-R, other ticker symbols. You get great broad-based exposure in a rapidly-evolving industry, almost a constant one-upmanship between the attackers and the protectors. And I like that well-rounded coverage because you're not making any one particular bet. But make no mistake, Rachelle. Investors, you have to own cybersecurity.