Investors received another reason to buy shares of Palo Alto Networks , according to Jim Cramer, in light of a cybersecurity incident that has impacted millions of AT & T customers. The telecommunications giant said Saturday it was investigating a leak of customer data onto the dark web, which compromised information belonging to 73 million current and former AT & T account holders. This includes sensitive info like social security numbers, home addresses and dates of birth. But bad news for AT & T can be seen as good news for Club holding Palo Alto Networks, as the data leak underscores the need for cybersecurity offerings at a time of widespread digital threats. Microsoft and UnitedHealth Group are among the companies recently involved in high-profile cyber incidents. “Buy some Palo Alto on this,” Jim Cramer said Monday. “We like that [stock.]” AT & T said the incident has not had a material impact on its operations and the passcodes of the 7.6 million current account holders affected have been reset. Meanwhile, the company said it is contacting the other 65.4 million former customers who were impacted. AT & T also said it currently does not have evidence that “unauthorized access to its systems” led to the data leak, according to a press release Saturday. AT & T didn’t immediately respond to CNBC’s request for comment on whether it had any new information regarding the data leak. PANW YTD mountain Palo Alto Networks (PANW) year-to-date performance The list of companies making headlines due to cybersecurity incidents is extensive. And the growing threat from emboldened hackers has generated business for Palo Alto Networks. UnitedHealth’s Change Healthcare subsidiary was targeted by hackers in February, causing disruptions to prescription refills for patients and reimbursement payments to health-care providers from insurers. Change Healthcare, the largest health-care payment processor in the U.S., is now working with Palo Alto Networks and other cybersecurity firms to investigate what happened and protect its systems, according to UnitedHealth . Club holding Microsoft also was the target of cyber criminals earlier this year. Microsoft, which has its own cybersecurity business, disclosed in January that a Russian intelligence group tried to breach email accounts of its employees. In a note to clients that month, JPMorgan analysts said argued that cybersecurity vendors like Palo Alto Networks could benefit from the incident , suggesting the news “could drive greater levels of caution with regard to relying too heavily on Microsoft for security.” AT & T’s data leak is the latest sign that cybersecurity solutions are more important than ever — and that investors should consider having exposure to the industry. Palo Alto Networks is our lone cybersecurity holding, even as its formerly red-hot stock has cooled following its Feb. 20 quarterly earnings report . That’s when Palo Alto Networks said it would be shifting toward a so-called “platformization” strategy, offering one unified cybersecurity platform to expedite consolidation in the sector. As part of the strategy, the company effectively would be giving away some technology for free for a period of time. While CEO Nikesh Arora argued it would help bolster Palo Alto’s edge against peers, the company subsequently slashed its full-year revenue and billings guidance, sending shares tanking 28.4% in a single session, to $261.97 each. Jim argued at the time that Palo Alto’s decision represented short-term pain for long-term gains, and we added to our Palo Alto Networks position on the earnings-related weakness. But after enjoying a recovery to roughly $316 on Feb. 28, the stock has drifted lower again. It fell 1.66% Monday to close the session at $279.42 per share. Jim said during the Monthly Meeting last week he’s comfortable with Palo Alto’s standing in the industry, particularly after his recent interview with Arora. “I do think after speaking with Nikesh that I am very tempted, when this breaks $280, to buy some Palo Alto,” he said. (Jim Cramer’s Charitable Trust is long PANW, MSFT. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
In this photo illustration the logo from the cyber security company Palo Alto Networks seen displayed on a smartphone.
Rafael Henrique| SOPA Images | Lightrocket | Getty Images
Investors received another reason to buy shares of Palo Alto Networks, according to Jim Cramer, in light of a cybersecurity incident that has impacted millions of AT&T customers.