Instead of building a competitive system, Intel Corp. (NASDAQ:INTC) bought the antivirus company McAfee for $7.6 billion in 2010. In July 2015, Microsoft Corp. (Nasdaq: MSFT) completed a buyout of cloud security provider Adallom for $320 million.
Share prices tend to shoot up when a company is acquired. In recent takeover news, a site pretending to be Bloomberg posted that Twitter was acquired for $31 billion in July. The report was fake, but Twitter’s stock price rose by 8% immediately following the news.
Analysts have identified Palo Alto Networks Inc. (NYSE:PANW), FireEye Inc. (NASDAQ:FEYE), and Fortinet Inc. (Nasdaq: FTNT) as potential candidates for buyouts. PANW and FTNT are part of HACK’s top 10 holdings.
Cybersecurity ETF: By the Numbers
The rest of HACK’s top 10 holdings include:
- Imperva Inc. (NYSE: IMPV)
- Trend Micro Inc. (OCTMKTS: TMICF)
- Proofpoint Inc. (Nasdaq: PFPT)
- Science Applications International Corp. (NYSE: SAIC)
- Check Point Software Technologies Ltd. (Nasdaq: CHKP)
- Juniper Networks Inc. (NYSE: JNPR)
- Cisco Systems Inc. (Nasdaq: CSCO)
- Intralinks Holdings Inc. (NYSE: IL)
The HACK ETF has provided returns of 4.04% to investors since its creation in 2014.
Yahoo! Finance reports HACK’s net assets are $1.16 billion as of Aug. 31. The ETF reports a P/E ratio of 27.
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