10 Best Cybersecurity Stocks to Buy According to Short Sellers

8. Rapid7, Inc. (NASDAQ:RPD)

Short float:11.78%

Number of Hedge Fund Holders: 27

Rapid7, Inc. (NASDAQ:RPD) is one of the 10 Best Cybersecurity Stocks to Buy According to Short Sellers. On May 21, the company unveiled its Q1 2026 Threat Landscape Report, which examined trends in vulnerability exploitation, ransomware activity, and cybercriminal infrastructure. The report found that vulnerability exploitation accounted for 38% of incident response cases during the period. Rapid7 said this shift reflects how AI is accelerating the speed at which attackers can identify, weaponize, and exploit unpatched systems at scale, compressing defenders’ response time.

Earlier this month, on May 7, Barclays lowered its price target on Rapid7 and maintained an Underweight rating on the shares following the company’s Q1 earnings report. It attributed the reduced price target to the company’s lower-than-expected Q2 annual recurring revenue (ARR) guidance.

For the second quarter of the year, Rapid7 is projecting ARR to reach approximately $820 million. In the first quarter of the year, the company registered an ARR of $832 million, a decrease of 0.6% year-over-year.

Rapid7, Inc. (NASDAQ:RPD) is engaged in AI-powered managed cybersecurity operations. The company’s Rapid7 Command Platform integrates security data, enriching it with AI, threat intelligence, and innovation to reduce risk and disrupt attackers.