– What is the alternative? SolarWinds enhances the results of security companies

OAKLAND, Calif. (Reuters) – Cybersecurity providers, including FireEye Inc and Microsoft Corp., have been unable to prevent a huge network breach unveiled this month by many US agencies and companies, yet their shares are growing for a second consecutive week.

Penetration over several months has exposed weaknesses in security tools as well as network management programs, especially SolarWinds Corp.’s widely used Orion software for network surveillance.

Reminders and scandals affecting products such as cars, food and toys tend to affect actions across the industry as investors speak out for sharp declines in consumer confidence and sales, according to two experts who have studied such scenarios.

But the influence of cybersecurity has been different. Wall Street is betting that governments and companies – after years of investing in the digital infrastructure – will only accelerate the acquisition of the latest IT tools.

“What’s the alternative?” said Venkatesh Shankar, a professor of marketing at Texas A&M University.

Reminders of airbags or outbreaks of Listeria tend to affect actions in a narrow supply chain, from restaurants and car dealers to suppliers of parts and ingredients, he said.

But “the extent of this breach is not just in the software industry,” he said, noting that SolarWinds customers span countless industries.

Kartik Kalaignanam, a professor of marketing at the University of South Carolina, said traders expect organizations to strengthen their defenses, even if it means purchasing services from companies that have been hacked.

“Although it could be argued that each of them has some sort of flaw in their system, there is a feeling that more spending will happen and the market will be pushed in general,” Kalaignanam said.

A BlackRock iShares cyber stock fund rose nearly 10% last week and rose another 3.5% this week, entering Thursday. FireEye rose to a 5-year high this week, Microsoft surpassed a 90-day high, and Palo Alto Networks, which said it blocked SolarWinds-related intrusions, reached a record high.

Mark Cash, who analyzes stocks for research firm Morningstar, said the SolarWinds breach “will definitely benefit” security companies. Once called to repair the defense, they inevitably receive a contract to settle, Cash said.

Shankar and Kalaignanam said they expect the stock in the industry to remain high for about six months to a year.