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Has the Time Come to Sell Check Point, the Reliable Cyber Stock?

Palo Alto Networks, Cisco are threatening its market share
Investors fret boom in security spending may peter out in 2016

By

Gabrielle Coppola

January 16, 2016, 10:00 PM UTCUpdated onJanuary 17, 2016, 10:01 PM UTC

Check Point Software Technologies Ltd.’s reputation among cybersecurity stocks rests on being a safe, if boring, investment. Now shortsellers are circling the world’s top firewall provider in anticipation of a stumble.

Bearish bets against Tel Aviv-based Check Point made up 12.9 percent of shares outstanding on Jan. 14 after touching a record 13.5 percent in December. The stock has tumbled 13 percent in the past month, compared with a 10 percent decline in the ISE Cyber Security ETF.