SVB Collapse - How Does It Affect The Cybersecurity Peak Fragmentation Thesis?

Summary

• A brief account of what has happened with the winding up of SVB.
• We consider the potential contagion effects.
• We assess the impact on the recent cybersecurity peak fragmentation thesis we published in early February.

Intro

This is Jordan here – the one half of the Convequity team. My research partner Simon will be publishing audio content to share his views on the Silicon Valley Bank failure tomorrow. As a prequel to Simon’s audio, here I’ll just share some high-level thoughts around the SVB events, and how it impacts our previously published thesis regarding the cybersecurity industry being at peak fragmentation, being ready to net consolidate going forward, and how that is bullish for our high-conviction stocks such as PANW, FTNT, and S.