Security Weekly Podcast Network (Audio) Security Money: The Index and NASDAQ Diverge - BSW #435
Feb 18, 2026
A deep dive into why the Security Weekly 25 and the NASDAQ are moving apart. Rebalancing moves like Netskope replacing Verint after acquisitions get explained. Funding trends show big AI raises while smaller security firms turn to debt or direct offerings. Discussion covers platform vs pure-play pressure, ecosystem acquisitions, fewer IPOs, and market rotation among cyber stocks.
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Index Diverges From NASDAQ
- The Security Weekly index has diverged from the NASDAQ, showing a rotation out of security stocks that began earlier for some companies.
- Matt Alderman highlights the index dropping ~500 points last quarter while NASDAQ stayed slightly up, signaling sector-specific weakness.
Profitability Trumps Top-Line Growth
- Public security companies are beating revenue modestly but showing stronger profit beats, reflecting a shift to profitability focus.
- Matt Alderman and Jason Albuquerque note profit beats averaged ~25% while revenue beat only ~2.7%, highlighting operational efficiency.
Debt Funding For AI Investments
- Public companies increasingly tap debt markets instead of equity to fund investments, likely for AI initiatives.
- Matt Alderman cites Zscaler, Check Point, and Fastly raising large debt rounds to finance future investments.