Why Rubrik Stock Soared 15% Today
Key Points
Rubrik shares jumped 15.3% Monday afternoon, riding a sectorwide cybersecurity surge.
Anthropic CEO Dario Amodei's weekend essay on agentic AI risks shook up the tech sector as a whole, while reminding everyone to invest in security tools.
Rubrik's backup and recovery tools become more valuable if AI-driven attacks slip past front-line defenses.
Cybersecurity is a hot topic today, driving Rubrik (NYSE: RBRK) stock to new heights. As of 3 p.m. ET, the data security and cloud-based data management expert is up by 15.3%.
I've seen headlines suggesting that Rubrik is reaping benefits from a collaboration with industry giant CrowdStrike (NASDAQ: CRWD), but that was hot on Sept. 1 and looks like old news by now. And the whole security sector is surging today. Several leading security stocks are up at least 13% right now, all driven by the same sudden interest in AI security services.
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An AI safety warning rattled the security sector
Over the weekend, Anthropic CEO Dario Amodei posted an article highlighting the risks of full-speed AI development. Without sensible safeguards, agentic AI systems could take unsavory action over time, ranging from cyberattacks and data hacks to economic disruption. The recent agentic hack of Hugging Face gave him a direct example, and the next unauthorized AI intrusion could be worse.
Amodei received unexpected support from direct rivals, including Sam Altman of OpenAI and Elon Musk, leader of Space Exploration Technologies (NASDAQ: SPCX), who controls the xAI business. Altman went as far as to suggest that an OpenAI IPO could be a bad idea until the security issues are settled.
Image source: The Motley Fool.
Rubrik's backup business looks more essential today
Rubrik doesn't run AI models, but it may very well benefit financially from this weekend's AI panic. If agentic AI systems pose a threat to data security, people and companies should prepare to defend against these new dangers. And if the attacks get by CrowdStrike's defenses, Rubrik's backups and data recovery services look like a must-have.
And even if the direct AI threats don't materialize quickly, this could be the wake-up call that blocked the new threat channel. Anything that inspires IT directors to implement better security and recovery systems should be good for Rubrik's business in the long run. The stock isn't cheap, but it is earning a premium price tag.
Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike and Rubrik. The Motley Fool has a disclosure policy.