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After initial profit taking following the company’s NASDAQ listing, HUB Cyber Security (NASDAQ: HUBC) has since rallied thanks to what seems like an influx of North American investors who are eager to get a piece of the Israeli cyber disruptor. After dropping to a low of $ 1.25 on March 2nd after the de-SPAC, HUBC has since risen +75% to $2.19 as of March 22nd – just a mere twenty days.
What is HUB Cyber Security?
HUB was established in 2017 by veterans of Israel’s elite intelligence and cyber units. The company specializes in unique Cyber Security solutions protecting sensitive commercial and government information and is a leading confidential computing developer. The company debuted an advanced encrypted computing solution aimed at preventing hostile intrusions at the hardware level while introducing a novel set of data theft prevention solutions. HUB operates in over 30 countries and provides innovative cybersecurity computing appliances as well as a wide range of cybersecurity services worldwide.HUB Security is a standout in the confidential computing market, having gained a strong position among major clients such as the Pentagon, Lockheed Martin, NASA, GE, and HSBC bank with its unique hardware-based HSM solution. In early March, the company listed on the NASDAQ completing a de-SPAC. Since then, HUBC has seen incredibly high trade volumes, alongside being one of the most talked about stocks on the internet (#1 on stocktwits) and one of the most active stocks traded in after hours.
Confidential Computing – The Next Big Thing?
Confidential computing involves the use of hardware-based security measures to safeguard data while it is being used. This includes the implementation of secure enclaves, which are isolated areas within a computer’s hardware specifically designed to protect sensitive data. Confidential Computing represents a major shift in the way data is protected. Traditional cybersecurity measures primarily focus on protecting data while it is at rest or in transit, but they are less effective at protecting data while it is in use. By closing the security gap, confidential computing offers a more comprehensive approach to data protection.
According to Everest Group, the confidential computing market is likely to grow exponentially over the next few years, driven by enterprise cloud and security initiatives. According to Everest’s report, the market for this technology could reach over $54 billion by 2026.
Governmental Cyber Spend Increasing
Corporations are not the only ones who are facing the risks of cyber attacks. Governments too are planning to substantially increase spending on cyber security. In fact, The proposed White House budget for 2024 sits at a total of $6.8 trillion and calls for a big investment in tech innovation to keep pace with foreign rivals alongside a bigger budget for the Cybersecurity and Infrastructure Security Agency (CISA). Just this month, the white house announced an ambitious national cyber security strategy which would include, among other things, “investing in a resilient future”, which according to the fact sheet would be aimed at reducing systematic technical vulnerabilities and prioritizing cyber research and development for next generation technologies.
It seems that confidential computing would play a role in achieving these goals, given its relevance to securing data in all its states, which could be seen as a systematic vulnerability that it is imperative we develop solutions for. If one were to speculate, it seems like HUB Cyber Security in particular could be a relevant candidate given the solutions they are developing in the field.
Recent Signals from HUB
Just a few days ago the company announced the addition of the former Deputy secretary of defense John C. Rogers to their advisory board, which would likely be helpful in securing further government contracts. According to the announcement “Rogers brings over 25 years of experience… operating at the intersection of technology, security, public policy, and global challenges. He served as the Principal Deputy Assistant and Deputy Assistant Secretary for legislative affairs at the United States Department of Defense and led a billion-dollar mobility company as CEO.“
This comes on top of HUB’s CEO, Uzi Moskowitz, who himself is a former IDF general who is considered a world renowned cyber security expert. HUB is also planning to hold an investor event on March 28th, during which Management will present the company’s business progress, new developments, vision and strategic plans. It also seems that Cathie Wood reinvested in HUB over the past few days after previously holding substantial positions via ARK and IZRL ETF. At the same time, it’s important to mention that HUB is still in its early days and has risen to fame very quickly. While it indeed has reported a pipeline of many exciting deals, there is still uncertainty as to their finality and investors await to see whether or not the company will continue to deliver on its promise. Either way, the confidential computing field seems like one to keep our eyes on.
