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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
Updated on

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.