Core Insights - The rapid adoption of enterprise AI is leading to a significant increase in cloud security risks, with 99% of organizations reporting at least one attack on their AI systems in the past year [2][4] - Traditional cloud security measures are proving inadequate against the fast-evolving threats, necessitating a shift towards more integrated and proactive security solutions [3][6] Cloud Security Risks - The report highlights that attackers are increasingly targeting foundational layers of the cloud, including API infrastructure and identity management, which are becoming critical vulnerabilities [4][7] - API attacks have surged by 41%, making APIs a primary entry point for sophisticated threats [7] - 53% of organizations cite lenient identity and access management practices as a major challenge, indicating that weak access controls are a leading vector for credential theft [7] Security Operations Challenges - The complexity of managing an average of 17 cloud security tools from five different vendors creates fragmented data and slows incident response, with 97% of organizations prioritizing the consolidation of their cloud security tools [7] - Disjointed workflows between cloud and security operations teams result in delays, with 30% of teams taking more than a full day to resolve incidents [7] Strategic Recommendations - There is a growing consensus that cloud security and application security must be fully integrated with security operations centers (SOCs) to enhance effectiveness, with 89% of organizations supporting this integration [7] - Organizations are encouraged to adopt end-to-end security solutions that combine proactive risk reduction with reactive incident response to keep pace with machine-speed threats [6]

Core Insights - Delinea has been awarded Frost & Sullivan's Technology Innovation Leadership Recognition Award in Non-Human Identity (NHI) Solutions, highlighting its leadership in the field of identity security [1] - The company is recognized as a Leader in the Frost Radar™: NHI Solutions 2025, achieving the highest score for innovation, which emphasizes its strong foundation in Privileged Access Management (PAM) and its advancements in AI-driven identity security [1][2] Company Overview - Delinea is a pioneer in securing both human and machine identities through centralized authorization, enabling organizations to manage interactions across modern enterprises [5] - The company offers a cloud-native Identity Security Platform that leverages AI to enhance security throughout the identity lifecycle, covering cloud and traditional infrastructure, data, SaaS applications, and AI [5] Technological Advancements - Delinea is transitioning from traditional PAM to a unified, cloud-native identity security platform that governs users, applications, machine identities, and AI workloads [2] - The introduction of Delinea Iris AI features automated privilege recommendations, policy optimization, and threat detection, showcasing the company's commitment to innovation [2] Market Position - Frost & Sullivan's research indicates that Delinea is positioned to lead in AI-governed access intelligence, addressing the growing need for securing non-human identities, which now outnumber human identities significantly [2] - The Delinea Platform is designed for continuous discovery, intelligence-driven authorization, and deep integration across hybrid and multicloud environments, reinforcing its enterprise-scale capabilities [3] Customer Engagement - Delinea has established a robust customer base and is expanding partnerships with major cloud providers such as Microsoft Azure, AWS, and Google Cloud, further solidifying its market leadership [3]

Economic Indicators - The Empire State manufacturing index unexpectedly fell to -3.9 in December, weaker than the expected 10.0 [3] - Economists forecast that Nonfarm Payrolls for November will be 51K, with October payroll data expected to show substantial losses in government jobs [6] - U.S. Average Hourly Earnings for November are expected to rise by +0.3% month-over-month and +3.6% year-over-year, compared to +0.2% month-over-month and +3.8% year-over-year in September [8] - Retail sales for October are anticipated to rise by +0.1% month-over-month, while core retail sales are expected to increase by +0.2% month-over-month [9] - The December S&P Global Manufacturing PMI is expected to be 52.0, and the S&P Global Services PMI is expected to be 54.0 [10] Stock Market Movements - Wall Street's main stock indexes ended in the red, with ServiceNow (NOW) plunging over -11% after news of a potential acquisition for $7 billion [4] - Cryptocurrency-exposed stocks fell as Bitcoin's price dropped more than -4%, with Riot Platforms (RIOT) down over -10% and Strategy (MSTR) down more than -8% [4] - iRobot (IRBT) plummeted over -72% after filing for Chapter 11 bankruptcy protection [4] - KLA Corp. (KLAC) rose more than +2% after being upgraded to Buy from Hold with a price target of $1,500 [4] Central Bank Insights - Fed Governor Stephen Miran indicated that the central bank's policy stance is overly restrictive for the economy, citing a benign inflation outlook [2] - New York Fed President John Williams stated that monetary policy is well-positioned for next year following a recent rate cut [2] - Boston Fed President Susan Collins supported the recent rate cut, noting that the balance of risks had shifted [2] European Market Developments - The Euro Stoxx 50 Index is down -0.14%, with defense stocks slipping due to progress in Ukraine peace talks [11] - Eurozone business activity growth slowed more than anticipated in December, with manufacturing contraction deepening [11] - The German December ZEW Economic Sentiment Index came in at 45.8, stronger than expectations of 38.4 [13] Asian Market Trends - China's Shanghai Composite Index closed down -1.11%, with economic indicators showing weakened momentum in November [15] - Japan's Nikkei 225 Stock Index closed sharply lower, with financial and energy stocks leading the declines [16] - The Japanese December au Jibun Bank Manufacturing PMI (preliminary) stood at 49.7, stronger than expectations of 49.0 [18]

Core Viewpoint - Monroe Capital LLC has acted as the sole lead arranger and administrative agent for a senior credit facility to support the growth of SDG Corporation, backed by private equity sponsor Recognize Partners [1] Company Overview - SDG Corporation is a leading managed cybersecurity services provider, focusing on identity and access management (IAM), threat, and risk [1] - The company is headquartered in Norwalk, CT, and employs approximately 400 professionals across the U.S. and India [1]

Core Viewpoint - The article discusses the current state of the artificial intelligence (AI) stock market, highlighting that while many AI stocks have reached new highs, not all are justified by their fundamentals. It emphasizes that there are still investment opportunities available, even for those with limited capital, such as $200 [2][3]. Group 1: Datadog - Datadog provides IT system analysis to ensure smooth operations, crucial for e-commerce and customer service [5]. - The company has made significant strides in supporting the AI industry, with 500 AI-native companies among its 32,000 customers, contributing to a revenue increase from AI customers to 12%, up from 6% a year ago [6]. - Datadog reported a revenue growth of 28% last quarter, with remaining performance obligations increasing by 53%, indicating strong future results [8]. - Non-AI customer revenue also grew by 20%, supported by high customer retention metrics [9]. - Despite a high forward P/E ratio of 75, the company benefits from cloud migration and generative AI trends, suggesting long-term growth potential [10]. Group 2: Fortinet - Fortinet specializes in next-gen firewalls and software-based security solutions, with significant growth in its SASE and SecOps offerings, which grew by 19% and 33% respectively [12][13]. - The company is positioned to capture market share in the growing SASE and SecOps markets, projected to grow at 18% and 10% annually through 2029 [13]. - Fortinet's diversified security offerings enhance customer retention and improve its threat detection capabilities through machine learning [15]. - The stock's forward P/E of 31 and EV-to-sales ratio of 8.7 are considered attractive for a company with double-digit sales growth [16]. Group 3: Tencent - Tencent operates popular mobile games and the WeChat platform, also being a major cloud service provider in China [17]. - The company's AI advancements have led to a 21% increase in ad revenue, driven by improved targeting and campaign optimization tools [18]. - Despite supply constraints affecting its cloud computing growth, Tencent has sufficient GPUs for its needs and is developing AI tools to enhance productivity in game development [19]. - The stock trades at about $78, with a forward P/E of just over 17, making it appealing for investors looking for growth opportunities in AI [22].

And right now we are 2 minutes away from the end of the trading day. Romaine Bostick alongside Katie Greifeld here to take you through to that closing bell with the global simulcast. We're joined now by Carol Massar and Tim Stenovec Welcome to our audiences across all of our Bloomberg platforms.That's television, that's radio, and that includes our partnership with YouTube. And for those folks watching right now, if you are confused as to why Tim and Carol were out of the fishbowl and into a new aquarium. W ...

Core Insights - Old Dominion University's School of Cybersecurity has achieved dual validation from the National Security Agency (NSA) for its cyber and artificial intelligence programs, marking a significant milestone in cybersecurity education [1][2]. Group 1: Program Validation - The Bachelor of Science in Cybersecurity with a Major in Artificial Intelligence for Cybersecurity received validation for NSA's AI for Cybersecurity recognition, AICyber [4]. - The Master of Science in Cybersecurity with a concentration in AI Security received validation for the Security of AI program, SecureAI [4]. - These programs are validated through 2030, highlighting their long-term relevance [4]. Group 2: Institutional Commitment - Old Dominion University emphasizes innovation and quality in its educational offerings, as stated by President Brian O. Hemphill, Ph.D., showcasing the institution's commitment to meeting industry needs [3][5]. - The School of Cybersecurity has earned all three of NSA's Centers of Academic Excellence (CAE) designations, including CAE Cyber Defense, CAE Cyber Operations, and Cyber Research, establishing its leadership in cybersecurity education [6]. Group 3: Growth and Development - The School of Cybersecurity has grown significantly since its inception, enrolling approximately 1,700 students and graduating over 1,500 alumni since its establishment in 2020 [7]. - The academic programs have expanded from a single interdisciplinary major to nearly a dozen undergraduate and graduate programs, adapting to the evolving national cybersecurity workforce [8]. Group 4: Partnerships and Opportunities - The University has developed partnerships with national agencies and companies, including local military bases, NSA, and Amazon, to create internship, research, and certification opportunities for students [8]. - The launch of MonarchSphere powered by Google Cloud represents a collaboration aimed at fostering innovation in higher education [10].

Core Insights - ServiceNow's shares declined significantly following reports of a potential acquisition of Armis for up to $7 billion, which would mark the largest acquisition in ServiceNow's history [1][5] - The acquisition would provide ServiceNow with access to Armis's cybersecurity platform, enhancing its capabilities in managing connected devices [2][5] - Investors reacted negatively to the news, likely due to concerns over the high cost of the acquisition, contributing to a challenging year for ServiceNow's stock performance [3] Company and Industry Summary - Armis, currently owned by Insight Partners, was acquired for $1.1 billion in 2020, indicating a substantial increase in its valuation if the current deal proceeds [4] - ServiceNow's stock has experienced a decline of over 11% recently, reaching its lowest level since April, and has lost more than 25% of its value since the beginning of 2025 [2][3] - The acquisition interest comes amid a trend in the tech industry, with other companies like Alphabet and Palo Alto Networks also pursuing cybersecurity acquisitions [4]

Core Insights - Fortinet (FTNT) is a significant player in the cybersecurity sector, but its high Price-to-Book ratio of 85.71 raises concerns about its valuation and whether it reflects the company's fundamentals or indicates an overheated market [1][10]. Financial Performance - In Q3 2025, Fortinet reported a 14% year-over-year revenue increase to $1.72 billion, with product revenues rising 18% to $559.3 million [2][8]. - The company achieved record operating margins, with GAAP operating margin at 32% and non-GAAP operating margin at 37% [2][8]. - Total billings grew 14% to $1.81 billion, indicating strong demand for Fortinet's security solutions [2]. Growth Segments - FortiSASE billing growth exceeded 100% year-over-year, establishing Fortinet as a leader in the Secure Access Service Edge market [3]. - The unified SASE segment saw a 19% increase in billings, while SecOps billings rose by 33% [3]. - The company added approximately 6,600 new organizations in the quarter, with deals over $1 million increasing by 26% and total dollar value growing over 30% [3]. Service Revenue Trends - Service revenue growth has decelerated for nine consecutive quarters, raising concerns about future performance [4]. - Management noted that service revenues are a lagging indicator of product revenues, with last year's negative product growth affecting current service metrics [4][6]. Guidance and Market Outlook - Management's Q4 2025 revenue guidance is between $1.825 billion and $1.885 billion, suggesting approximately 12% growth at the midpoint [5]. - Full-year 2025 revenue guidance is set at $6.72 billion to $6.78 billion, with diluted non-GAAP earnings per share expected between $2.66 and $2.70, slightly below market expectations [5]. Strategic Initiatives - In November 2025, Fortinet launched its Secure AI Data Center solution, featuring the FortiGate 3800G firewall with significant performance and energy efficiency improvements [7]. - A partnership with Climb Channel Solutions was announced in December, aimed at expanding reseller distribution and market reach [7]. - The company initiated a global Cybercrime Bounty program with Crime Stoppers International to encourage reporting of cybercriminal activities [9]. Competitive Landscape - Fortinet's stock has declined 19.4% over the past six months, contrasting with a 22.4% return in the broader Zacks Computer and Technology sector [13]. - Competitors like Zscaler and CrowdStrike have shown stronger performance, with Zscaler shares gaining 34.2% and CrowdStrike shares increasing by 51.3% in the same period [16][19]. Investment Recommendation - Given the mixed signals, a cautious investment approach is recommended. Fortinet's operational strengths and market leadership in high-growth segments provide a solid foundation, but the premium valuation and slowing service revenue growth suggest limited upside potential [20][21].

Core Insights - Cloudflare (NET) has developed a robust product portfolio with over 55 revenue-generating products, enhancing its annual contract value and net retention rate [1][11] - The company serves approximately 80% of leading AI firms globally, leveraging its low-latency edge network to gain a competitive edge [2][11] - Cloudflare's security solutions, including Magic Transit and Zero Trust, are gaining traction, particularly in response to increased AI scraping and bot activity [3] Product and Market Position - Cloudflare's diverse offerings in cloud-based security, content delivery networks (CDN), and developer solutions allow it to provide comprehensive end-to-end solutions for enterprises [6] - The company is rapidly scaling its cloud-native strategy, positioning itself favorably against competitors like Akamai Technologies and Zscaler [7][8] - Cloudflare's bundled security tools facilitate easier adoption and higher net retention rates, differentiating it from pure cybersecurity competitors [9] Strategic Collaborations - Cloudflare is partnering with industry leaders such as Oracle, Alphabet, Coinbase, Visa, Mastercard, and American Express to enhance its service offerings [4] - Collaborations with Oracle focus on hybrid and multi-cloud workloads, while partnerships with Alphabet aim at developing post-quantum cryptography standards [4] Growth Potential - The combination of AI, security, multi-cloud networking, and enterprise-scale solutions creates a strong growth engine for Cloudflare, with a projected revenue growth of 28% year-over-year for 2025 [5] - The Zacks Consensus Estimate for Cloudflare's 2025 earnings indicates a year-over-year growth of 21.3%, with recent upward revisions [15] Financial Performance - Cloudflare's stock has surged 76.6% over the past year, significantly outperforming the Zacks Internet – Software industry's growth of 0.9% [10] - The company currently trades at a forward price-to-sales ratio of 26.37X, which is substantially higher than the industry average of 4.82X [13]