Top-Performing Cybersecurity Investment Options and Portfolios in 2025
Cybersecurity spending has skyrocketed post-COVID-19, driven by the widespread adoption of cloud computing and remote work. As a result, many cybersecurity stocks became top performers in 2020 and 2021. While a bear market in 2022 affected some high-flyers, the sector bounced back quickly, positioning itself as a top investment theme for the decade.
Why invest in cybersecurity stocks?
Data breaches have become alarmingly common, with the Identity Theft Resource Center reporting a record number in 2023. Despite a decrease in individual victims, cybercrime shifted towards targeted fraud and scams. With global spending on cybersecurity expected to exceed $200 billion annually by 2028, retail investors can tap into this high-growth sector by investing in cybersecurity stocks.
Top cybersecurity stocks to own for the long term (2025)
- CrowdStrike Holdings (NASDAQ: CRWD): With a $106 billion market cap, this company leads the endpoint security software market. Its cloud-based, AI-driven system efficiently detects security breaches and threats, making it a worthy long-term investment.
- Zscaler (NASDAQ: ZS): A cloud computing and internet security software provider, Zscaler boosted its sales rapidly, making it a leading industry player. Its large market cap and high growth potential make it an attractive investment.
- Okta (NASDAQ: OKTA): Cloud-based identity and access management have made Okta a powerful player in the cybersecurity industry. Its zero-trust architecture is particularly useful in today's mobile and cloud-based world.$106 billion
- SentinelOne (NYSE: S): CrowdStrike's competitor, SentinelOne, provides automatic cybersecurity threat detection and resolution. Its rapid expansion and cloud-based platform poise the stock for continued growth.One of the largest pure-play cybersecurity companies by market cap and revenue and a leader in endpoint security software
- Palo Alto Networks (NYSE: PANW): As the largest independent cybersecurity company by total annual sales, Palo Alto Networks offers a balance of growth and profitability. Its legacy services still experience high demand, with more focus diverted towards cloud security.
- Datadog (NASDAQ: DDOG): This cloud-native platform offers data monitoring and insights, making it essential for complex cloud-based operations. Its expansion into data analytics software further bolsters its growth potential.$32 billion
- Akamai (NASDAQ: AKAM): As a CDN, Akamai secures web content and ensures its safe delivery. With the increase in internet usage for entertainment and work, the company's network security offerings and edge computing technology are highly sought after.Cloud computing and internet security software provider
Cloud-native security software leaders
1. CrowdStrike Holdings
$17 billion
CrowdStrike is a cloud-based security software provider known for its machine learning capabilities,Endpoint security,and breach detection and response solution. Its easy deployment and expansion of modules make it an attractive long-term investment, especially for remote work-focused businesses. Regardless of the market conditions, CrowdStrike's profitability and high growth rate make it an appealing long-term play.
Cloud-based identity and access management
2. Zscaler
As a competitor of CrowdStrike, Zscaler also offers cloud-native, endpoint security, and internet security software. It's renowned for its growth potential in the rapidly expanding cloud computing sector. Despite market fluctuations, Zscaler's consistently strong revenue growth makes it a reliable long-term investment in the cybersecurity sector.
$7.7 billion
3. Okta
Recent IPO and CrowdStrike competitor
Okta is a pioneer of identity and access management, offering zero-trust architecture for digital security. Its mobile and cloud-based solution caters to large and complex organizations, keeping customer data confidential and secure while ensuring user verification. Despite a cyberattack that affected two of its largest customers in early 2022, Okta remains on a growth trajectory, making it a promising long-term investment.
4. SentinelOne
$129 billion
SentinelOne’s cloud-native endpoint security platform automatically detects and resolves cybersecurity threats. With significant growth in its revenue and a recent completion of its IPO, SentinelOne presents a compelling long-term investment opportunity in a rapidly evolving cybersecurity landscape.
Largest independent cybersecurity company by total annual sales
5. Palo Alto Networks
Known as the largest independent cybersecurity company by total annual sales, Palo Alto Networks provides both legacy and cloud-native security solutions. Despite compensation for its new cloud offerings, the company continues to maintain double-digit percentage growth and high profitability. Overall, Palo Alto Networks' long-term growth potential —combined with a more attractive valuation—makes it an appealing investment choice.
$83 billion
6. Fortinet
Large security company with best-in-class hardware for data center security
As one of the world's largest cybersecurity companies by both revenue and market cap, Fortinet provides robust security services and hardware for data centers. Its strong expertise in firewalls and 5G mobile networks markets make it a stable long-term investment choice, despite facing competition from CrowdStrike and Palo Alto Networks.
7. Akamai
$50 billion
Akamai’s solutions secure web content and ensure its delivery to the right destination. A leader in the CDN sector, Akamai offers both network security and edge computing services, which help it excel in today's high-demand, highly distributed internet. With its competitive advantages, Akamai remains an attractive long-term investment choice.
Cloud-native platform built to collect, monitor, and yield insights on cloud-based data and operations
Cloud Security, Identity Management, and Legacy Security Vendors
Top Cloud-Native Security Software Leaders
$15 billion
- CrowdStrike Holdings (NASDAQ: CRWD)
- Zscaler (NASDAQ: ZS)
- Okta (NASDAQ: OKTA)
- SentinelOne (NYSE: S)
- Palo Alto Networks (NYSE: PANW)
Infrastructure Monitoring and Content Delivery Networks
One of the largest internet infrastructure companies that helps secure web content
Top Infrastructure Monitoring and CDN Providers
- Datadog (NASDAQ: DDOG)
- Akamai (NASDAQ: AKAM)
Cybersecurity stocks are a red-hot niche of the tech industry, and knowing how to invest in them can yield significant returns in the coming decade. By selectively incorporating enrichment data, this guide offers actionable insights on top cybersecurity stocks and identifies long-term investment opportunities while providing a revised and restructured perspective on cybersecurity trends.
- Amidst rising concerns about data breaches and cybercrime, with global spending on cybersecurity expected to surpass $200 billion annually by 2028, investing in cybersecurity stocks could be an attractive option for retail investors looking to tap into the high-growth sector.
- When it comes to long-term investments in cybersecurity stocks, CrowdStrike Holdings (NASDAQ: CRWD), with its leading position in the endpoint security software market and cloud-based, AI-driven system, is worth considering due to its profitability and high growth rate.
- Inflation has been a concern for many investors, but in the case of cybersecurity stocks, particularly companies like Zscaler (NASDAQ: ZS) with a large market cap and high growth potential, their resilience to inflation and ability to maintain revenue growth make them attractive long-term investment options.
- Positioning oneself in the cybersecurity sector as an investor can be beneficial, as the sector has demonstrated its ability to bounce back quickly from market downturns, such as the bear market in 2022, and continue to perform well in the long term, despite challenges posed by cyber threats and the ever-changing landscape of technology.
