Business Corpus: Federal Government Shutdown Could Hit These Tech Stocks But Spare SecurityThe partial federal government shutdown could impact the revenue of technology companies, while cybersecurity software providers seem better positioned to weather any spending cuts. The post Federal Government Shutdown Could Hit These Tech Stocks But Spare Security appeared first on Investor's Business Daily.

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The partial federal government shutdown could impact the revenue of technology companies such as Pure Storage (PSTG), NetApp (NTAP) and Nutanix (NTNX), analysts said. Cybersecurity companies like Palo Alto Networks (PANW), CyberArk Software (CYBR), and Fortinet (FTNT) seem better positioned to weather any spending cuts, however.

The partial federal government shutdown began Dec. 22. The government shutdown affects nine of the 15 federal departments, dozens of agencies, and hundreds of thousands of workers.

"We are assessing the potential impact of the U.S. federal government shutdown to our enterprise hardware and storage coverage and we believe NetApp, Nutanix, and PureStorage may all be impacted," Susquehanna Financial Group analyst Mehdi Hosseini said in a report to clients.

"We believe U.S. federal can make up to 10% to 20% of revenue/billings for NetApp, Nutanix and Pure Storage while exposure for Hewlett Packard Enterprise (HPE) is likely less," Hosseini went on to say.

Pure Storage stock rose 2.1% to close at 15.75 on the stock market today. Nutanix stock climbed 7.6% to 43.47. NetApp stock advanced 3.4% to 59.43.

At KeyBanc Capital Markets, analyst Rob Owens says spending to deter computer hackers will remain a priority.

Government Shutdown May Spare Cybersecurity Companies

"Despite speculation surrounding the U.S. government shutdown and its impact on the cybersecurity sector, we see the potential impact largely as a nonevent at this point," Owens said in his note to clients. "We note that cybersecurity is deemed essential and continues to be funded across organizations despite all of the headline noise."

Cybersecurity companies Palo Alto Networks, CyberArk, and Fortinet all are members of the IBD 50 roster of growth stocks.

House Democrats and Senate Republican leaders aim to end an impasse that has shuttered a large part of the federal government. President Trump has demanded that $5 billion in funding be provided for a border wall with Mexico.

The partial federal government shutdown impacts the Justice, Homeland Security, Interior and Treasury departments. The shutdown also affects independent agencies, including the Securities and Exchange Commission and Federal Communications Commission.

However, the Department of Defense has its funding secured for fiscal 2019.

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