After high profile hacks at AI platforms such as Hugging Face and Anthropic’s Claude, cybersecurity stocks are in the spotlight for all the right and wrong reasons. Risks feel sharper, and that can quickly reshape where capital flows next. For investors, that mix of fear and urgency can create openings. This article looks at 3 cybersecurity stocks exposed to the latest AI security shock and why they may deserve a closer look.

The stocks highlighted below are just a starting sample, and the full screen surfaced 39 more cybersecurity companies with equally compelling stories that are not covered here. To go deeper on this theme, head straight into the Cybersecurity Stocks screener to identify, filter, and analyze the cybersecurity stocks that best fit your conviction and risk profile.

Okta (OKTA)

Okta is a cybersecurity company that focuses on identity, which is often where attackers strike first. Its platform handles secure logins, multi factor authentication and governance for both human users and nonhuman identities such as APIs and AI agents. Okta generates about $3.0b in revenue from multi year subscriptions to its cloud based offerings and currently has a market cap of about $24.9b.

Investors looking at the AI security story may find Okta hard to ignore. The company sits in the middle of identity and access control, which is where many high profile breaches start. It is now leaning into AI agent security with products like Okta for AI Agents and the planned Permiso Security acquisition. Earnings growth has been strong and margins have improved, although revenue growth is slower than the wider US market and the P/E multiple is high, so expectations are already elevated. There are also questions around profitability quality, insider selling and a history of volatile trading. The key question for investors is whether Okta's role in securing AI agents can justify that premium and reshape how investors think about its long term earnings power.

Okta’s AI agent push and premium P/E could be masking where the real story sits. Before you decide how it fits in your portfolio, read the 2 key rewards and 2 important warning signs

Build your own AI security shortlist

Okta and the two other cybersecurity stocks in this article all surfaced from a single Simply Wall St screen, but the real edge comes from tailoring the filters to your own view on valuation, growth, quality and risk. Use our flexible Screener to shape your own watchlist, or tap into curated themes with our Investing Ideas.

Qualys (QLYS)

Qualys runs a cloud based cybersecurity and compliance platform that helps businesses find, measure, and fix vulnerabilities across their IT and cloud infrastructure. The company generates about $703 million in revenue from security software and services, and has a market cap of roughly $6.3b.

Qualys sits squarely in the AI era’s vulnerability spotlight, offering scanless InstaScan detection, its Agentic AI platform and the Enterprise TruRisk Management suite, just as recent AI related breaches are forcing companies to reassess their defenses. Earnings growth has been strong over the past 5 years and margins are high, with a P/E that screens cheaper than many software peers and some analysts flagging a discount to fair value. However, revenue growth expectations are more modest and there has been meaningful insider selling. For investors, the key question is whether Qualys’ AI heavy platform and channel momentum can outweigh concerns around future growth, pricing changes and execution risk in a crowded market.

Qualys appears to show earnings strength and high margins that are quietly decoupling from a softer growth story. Get the full context on valuation, pricing shifts and execution risk in the 3 key rewards and 1 important warning sign

Rapid7 (RPD)

Rapid7 provides cybersecurity software and services that help companies detect, investigate, and respond to attacks across on premises, cloud, and application environments under brands like Rapid7, Nexpose, and Metasploit. The business generates about $859 million in revenue from security software and services, with most sales tied to its Command platform, managed detection and response, and exposure management tools. Rapid7 currently has a market cap of about $694 million.

Rapid7 sits in the crosshairs of the AI security story, with exposure management, threat intelligence, and an AI driven Command platform that aims to turn a flood of new vulnerabilities into actionable remediation. Analysts expect earnings growth and improving returns on equity, yet revenue is forecast to decline and past year earnings fell. This raises questions about how quickly the newer platform strategy can offset legacy weakness. Adding in high share price volatility, a relatively new CEO, and debt that is not well covered by operating cash flow, Rapid7 appears to be a stock where the AI tailwind and expanding security operations offering could be meaningful. However, execution and balance sheet discipline may matter more than headlines suggest.

Rapid7’s AI driven Command story and exposure management push may appear out of sync with its share price and debt concerns. To see how those pieces fit together, read the 2 key rewards and 2 important warning signs (1 is major!)

Seeking Alternatives Before Everyone Else?

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• Scan for early momentum in companies with strong cash flows using the 51 high quality undervalued stocks. Get a tighter shortlist before others start focusing on the same stories.
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• Zero in on durable income ideas using the 8 dividend fortresses. Explore potential yield opportunities while prices may still reflect hesitation rather than confidence.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.