Gil Shwed: Cybersecurity market disconnected from reality

Core Insights - The executive chairman of Check Point Software Technologies, Gil Shwed, discussed the challenges in the cybersecurity sector and the company's recent acquisitions, emphasizing the importance of AI in transforming the industry [1][3]. Group 1: Market Assessment - Shwed expressed skepticism about the presence of a bubble in tech stocks, noting that while AI represents a significant revolution, there may be overvalued stocks in the market [2]. - He compared the current market situation to the Internet bubble of 2001, stating that while the revolution occurred, the market experienced significant volatility [2]. Group 2: AI and Cybersecurity - AI is expected to play a crucial role in cybersecurity, potentially addressing the shortage of cybersecurity experts by allowing humans to oversee systems rather than operate them [3]. - However, the rapid pace of AI development also poses risks, including potential attacks on infrastructure and vulnerabilities in data communication [3]. Group 3: Acquisitions and Company Strategy - Check Point acquired Swiss company Lakera for $300 million to enhance its AI capabilities, highlighting the depth of technology found in the acquisition [4]. - Shwed emphasized the need for companies to create customer value and profit, criticizing the current market focus on fundraising rather than value creation [4]. Group 4: Competition and Market Position - The cybersecurity market is highly competitive, but Check Point has demonstrated the ability to generate long-term customer value and profits [4]. - Shwed acknowledged the presence of tech giants in the cybersecurity space but maintained that there is room for all players in the market [4]. Group 5: Leadership and Shareholding - Shwed remains the largest shareholder of Check Point, having sold over a million shares for approximately $205 million, but he intends to maintain his position [4]. - After stepping back from the CEO role, Shwed expressed satisfaction with his current involvement in the company, enjoying a less intensive work schedule [4].