Darktrace shares have been on the rise this past week. So much so that it was the highest-rising company listed on the London Stock Exchange (LSE).
Here’s why Darktrace shares have been so popular with investors and what we might expect from them going forward.
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What is Darktrace?
Darktrace is a cybersecurity firm that uses artificial intelligence (AI) to detect and prevent computer attacks. It’s futuristic stuff!
It’s quite a niche business, but Darktrace has around 5,000 customers from a number of different countries, and a few high-profile clients looking to protect their IT systems and networks.
Almost everything is digital these days, and it seems like every week there’s news of cyber and ransomware attacks. So it’s no surprise that businesses like this are attracting a lot of demand for their services.
What’s going on with Darktrace shares?
According to information from Saxo Markets, the spookily named cybersecurity firm saw its share price boom last week. It rose by 36.55% in just seven days!
This high rise in the share price comes not long after the company’s initial public offering (IPO) back in April.
Stocks can be quite volatile following a public listing, but Darktrace shares have been relatively stable. After an initial rollercoaster, the price had been holding ground for a while and stabilising at around 350p per share. But the big spike last week saw shares peaking at close to 485p per share.
Why has the price of Darktrace shares risen?
Investor confidence in the company only seems to be growing. It’s one of the most exciting companies to be listed on the LSE in recent times and the buzz is still visceral.
Darktrace even won an award this month for Best Security Company at the 2021 SC Europe Awards. Some believe the company is also a better value investment compared to American counterparts who run similar cybersecurity businesses.
Darktrace has done a really good job of increasing its revenue. However, it’s worth pointing out that for now, the company is still a loss-making business. It’s something that is quite common for high-growth technology stocks.
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What other companies on the LSE have been big risers?
It’s not just Darktrace shares that have been on a tear. Saxo Markets reports that the following companies also posted notable gains last week:
- Trustpilot: 12.82%
- Trainline: 11.04%
- Auction Technology Group: 9.68%
- Chrysalis Investment: 9.52%
So there are plenty of exciting opportunities out there right now for investors.
Can I buy shares in Darktrace?
The shares are publicly traded, so you can invest in the company using a share dealing account that gives you access to companies listed on the London Stock Exchange.
If you’re able to do so, using a top-rated stocks and shares ISA account for buying shares will help you protect your portfolio from tax. This will bump up your returns in the long run.
Just remember that any investment involves risk, and you may get out less than you put in. These fast gains may continue, or the brakes may apply to slow the roll. So consider any potential investment seriously before putting your money in.
Please note that tax treatment depends on the specific circumstances of the individual and may be subject to change in the future.
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