Chicago, IL – March 26, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Alphabet GOOGL, Okta Inc OKTA, Fortinet FTNT, Microsoft MSFT and Amazon AMZN.
Here are highlights from Tuesday’s Analyst Blog:
Google’s $32B Bet on Cybersecurity
Google’s cloud division is rapidly expanding, with annual revenues jumping 64% from $26.3 billion in 2022 to $43.2 billion last year. However, Google lags behind Microsoft and Amazon in the cloud computing industry. Acquiring Wiz, a cybersecurity startup specializing in cloud security and AI-driven protection, helps Google compete more aggressively in the multi-trillion-dollar cloud market.
This deal also reflects the fact that cybersecurity is becoming essential for cloud computing. With AI driving new security threats, companies are increasingly prioritizing security solutions—a trend that directly benefits Okta and Fortinet.
How OKTA Stands at the Forefront of Cybersecurity’s Future
Okta is well-positioned to benefit from the rising focus on identity security, driven by increased cloud adoption and growing regulatory demands. With the continued rise of multi-cloud environments, organizations are facing more complex identity security challenges. Okta addresses these concerns through its Identity Governance and Access Management solutions, ensuring seamless and secure user authentication across cloud platforms. The company has emphasized its commitment to security by launching the Okta Secure Identity Commitment initiative, which strengthens its position as a trusted cybersecurity leader. Additionally, its growing suite of identity security solutions, including Identity Governance, Privileged Access and Identity Threat Protection, highlights its role in mitigating identity-based cyber threats.
Regulatory compliance remains a key driver for Okta’s growth, as governments and corporations enforce stricter security mandates. Okta’s solutions cater to these requirements by providing enhanced security features that help organizations meet compliance standards. The company's recent updates to its Customer Identity platform for the U.S. public sector further illustrate its commitment to meeting stringent security regulations. Moreover, Okta's focus on specialized sales teams for IT security and developer markets ensures tailored solutions for enterprise customers, driving adoption across industries.
How FTNT is Shaping the Future of AI-Driven Cybersecurity
Fortinet is positioned to benefit from rising cybersecurity investments, as highlighted by its strong 17% revenue growth in the fourth quarter of 2024 and 18% growth in product revenues — its highest in six quarters. The increasing adoption of AI-driven cybersecurity and Secure Access Service Edge (SASE) solutions has fueled demand for Fortinet’s unified security platform. The company’s Unified SASE revenues grew 13%, now accounting for 23% of total business, demonstrating the growing necessity of integrated network security. With AI-powered security solutions and the acquisition of Perception Point, Fortinet has expanded its cybersecurity footprint beyond firewalls to email and collaboration security, further strengthening its end-to-end protection capabilities.
Additionally, Fortinet’s AI-driven security and automation strategy aligns with the industry's shift toward consolidated security platforms. The company’s FortiGuard AI-powered security services provide real-time threat intelligence, while its FortiAIOps and FortiAI solutions streamline threat detection and response???. As enterprises seek cost-effective, scalable security solutions, Fortinet’s single-operating system strategy (FortiOS) and proprietary ASIC technology offer superior performance with reduced costs. With Google’s $32 billion Wiz acquisition underscoring the critical role of AI-driven cloud security, Fortinet is well-positioned to capitalize on the surge in cybersecurity demand, making it a compelling investment opportunity.
Bigger Picture & Final Verdict: Bet on OKTA & FTNT?
Google’s agreement for a $32 billion investment in cybersecurity highlights big tech’s growing focus on digital security, setting the stage for increased industry consolidation. As cyber threats become more sophisticated, demand for identity security solutions like Okta and network security offerings from Fortinet is expected to rise.
This move could prompt other tech giants like Microsoft and Amazon to acquire cybersecurity firms to strengthen their security capabilities. With consolidation on the horizon, cybersecurity leaders like Okta and Fortinet may see higher valuations, benefiting from the industry’s rapid growth and rising investment trends.
Thus, investors looking to capitalize on this trend now should bet on OKTA and FTNT since the firms are prime beneficiaries of the cybersecurity boom. Both the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
