Why is the Darktrace share price rising?
Since its stock market debut earlier this year, the Darktrace (LSE: DARK) share price has risen 55%. Theres no denying its pretty impressive for a company that was founded less than a decade ago. I covered the stock when it first came to market and I said that Id hold fire and watch the share price. I still hold this view. Since its London listing, Darktrace has been quiet on the news front. There have hardly been any meaningful announcements from the company. 5G is here  and shares of this sleeping giant could be a great way for you to potentially profit! According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air And if you click here well show you something that could be key to unlocking 5Gs full potential... So what Im really waiting for is either a trading update or a set of results to get my teeth into. As a public company, at some point it will have to release this information. So I guess Ill have to wait for this to make my investment decision. But until then, I think there are a few reasons why the Darktrace share price has soared. Here they are. Cybersecurity  When I think of the London stock market, tech companies dont spring to mind immediately. But there are a few. My fellow Fool Edward Sheldon highlighted that investors can get exposure to UK cybersecurity stocks, but the options are limited. So when Darktrace joined the already limited pool of cybersecurity firms on the London Stock Exchange, of course this made some noise. In fact, it has worked in the companys favour. Although investors may not fully understand cybersecurity, we all know that its important. And its becoming more prevalent in todays digital society. Darktrace shares represent an opportunity to get involved in this lucrative industry. And I think this is one reason thats driving the stock price. Buzzwords  Investors like buzzwords. And Darktrace has a few of these including artificial intelligence (or AI), self-learning and autonomous. In fact, all these words appear on the companys investor website and are used to describe the firm. When an investor hears fashionable phrases, like self-learning and autonomous it indicates a company embracing technology. It also indicates that the product should become more sophisticated in time with data and without the need for human intervention. This also means that Darktrace has a potential high-margin product to sell to its customers. Smart people  The company was founded and is run by some smart people. Founders and employees with strong credentials add to the firms credibility and reputation. Back in the early days, Darktrace started with a team that included leading mathematicians from Cambridge University as well as cyber intelligence specialists. This talent clearly gave the company a competitive edge and laid the foundations for its products. Now that Darktraces story is out in the open, investors have clearly warmed to the concept and have been filling their boots with the shares. I think its another reason why the stock has been climbing. Risks  This is all great, but Im not a buyer just yet. I do have a few concerns. The company is generating revenue but is loss-making. A tech firm needs to stay innovative so this means capital expenditure. Id like more colour on the road to profitability. Perhaps this may be addressed when it releases its results. So for now, Ill only be monitoring the Darktrace share price.