Question 1

What is cloud-native cybersecurity?

Accepted Answer

Cloud-native cybersecurity means security tools are built and delivered entirely through the cloud, rather than installed on individual machines or office servers. This approach allows platforms to process vast amounts of threat data globally and update their defences in real time. It is better suited to modern working environments where employees connect from anywhere and data is stored online rather than in a fixed office network.

Question 2

What is zero-trust security?

Accepted Answer

Zero-trust security is a modern approach to digital defence that verifies every user and device every single time they try to access a system, regardless of whether they are inside or outside a company's network. It replaces the older assumption that anyone already connected to a network can be trusted. Cloudflare is one of the leading platforms building zero-trust security into its services, and it is increasingly considered the gold standard for enterprise security.

Question 3

What does platformisation mean in cybersecurity?

Accepted Answer

Platformisation refers to the strategy of consolidating all of a company's cybersecurity tools under one integrated provider, rather than managing multiple specialist vendors. Palo Alto Networks has championed this approach, arguing that a single, AI-driven platform offers better protection and lower complexity than a patchwork of separate contracts. As IT budgets come under pressure, this model is becoming increasingly attractive to enterprise and government clients.

Question 4

Is next-gen AI cybersecurity a good investment?

Accepted Answer

The investment case is built on structural, non-discretionary demand — businesses and governments cannot opt out of digital security as threats grow more sophisticated. Companies like CrowdStrike, Palo Alto Networks, and Cloudflare operate on subscription-based models that generate predictable, recurring revenue and benefit from high customer retention. However, valuations can be demanding and the sector is competitive, so investors should assess the risks carefully and consider their own financial situation.

Question 5

What are the risks of investing in cybersecurity stocks?

Accepted Answer

Cybersecurity is a competitive industry where not every company will succeed, and growth-oriented stocks in this space can carry demanding valuations. Macroeconomic pressures, shifts in IT spending, and regulatory changes can all affect share prices. Some companies in this theme are large-cap names with more stable profiles, whilst others are smaller and carry greater risk. As with all investments, past performance does not guarantee future results and you may lose money.

Question 6

How do cybersecurity companies make money?

Accepted Answer

Most leading next-generation cybersecurity companies operate on a software-as-a-service (SaaS) model, where customers pay a regular subscription fee rather than a one-off licence. This creates predictable, recurring revenue that tends to grow as customers expand their usage. Switching costs are high in cybersecurity, meaning customers rarely change providers once a platform is embedded into their operations, which supports strong retention rates and a durable revenue base.

Question 7

Could cybersecurity stocks be acquisition targets?

Accepted Answer

Market consolidation is accelerating in the cybersecurity sector, with larger technology companies actively acquiring security specialists. For investors already holding shares in a company that is acquired, this can represent a significant event, as acquisitions in technology typically happen at a premium to the current market price. This is not a guarantee, but it is a factor worth understanding when assessing the risk and reward profile of this investment theme.

Question 8

Why is AI making cyber threats worse?

Accepted Answer

AI allows attackers to generate, mutate, and deploy threats far faster than any human security team can respond to. Traditional perimeter defences, which were designed to protect fixed office networks, are no longer fit for purpose in a world where data lives in the cloud and workforces are distributed. This has created an urgent need for AI-driven, cloud-native security platforms that can detect and respond to threats in real time.

Question 9

Top AI cybersecurity companies to watch?

Accepted Answer

Based on Nemo's Next-Gen AI Cybersecurity theme, three key names are CrowdStrike (CRWD), Palo Alto Networks (PANW), and Cloudflare (NET). CrowdStrike uses AI to protect every connected device via its Falcon platform, Palo Alto Networks offers a broad integrated security portfolio across network, cloud, and operations, and Cloudflare's global network blocks threats before they ever reach a client's systems. Full stock data and analyst ratings are available on Nemo's platform.

Question 10

Is cybersecurity spending growing in 2024 and beyond?

Accepted Answer

Demand for next-generation cybersecurity is structural rather than cyclical, driven by the permanent shift of business operations to the cloud and the rising sophistication of AI-powered attacks. Businesses and governments are increasing security spending out of necessity, not choice. The article describes this as non-discretionary expenditure, comparable to essential utilities, which supports the long-term growth thesis for companies operating in this space.

Question 11

How can I invest in AI cybersecurity stocks from Africa?

Accepted Answer

Through Nemo, investors across Africa and the broader region can access US-listed cybersecurity stocks such as CrowdStrike, Palo Alto Networks, and Cloudflare via a regulated, commission-free platform. Nemo is regulated by the ADGM Financial Services Regulatory Authority and offers fractional shares starting from just $1, making it possible to invest in these companies with small amounts. AI-powered research tools through Nemo AI are also available to help investors evaluate the theme.

Question 12

Can I buy fractional shares in cybersecurity companies on Nemo?

Accepted Answer

Yes. Nemo offers fractional shares in US stocks, including companies within the Next-Gen AI Cybersecurity theme, starting from just $1. This means investors do not need to buy a full share to gain exposure to companies like CrowdStrike or Palo Alto Networks, which can carry high share prices. Trading is commission-free, and the platform offers SIPC protection up to $500,000, providing a regulated and transparent environment for investors.

Cyber Attacks Are Getting Smarter. So Are the Companies Fighting Back.

Cyber Attacks Are Getting Smarter. So Are the Companies Fighting Back.

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