A few years back, cybersecurity stocks were hot — expected to enjoy massive growth in both earnings and its share price. But somewhere between 2015 and 2016, things seemed to fizzle out, as the stocks never lived up to the hype. Presently, in the wake of election meddling, fake news and an increasing number of data breaches, these firms are seeing a boom in demand for their services.
One company that seems to be gaining a lot of traction is FireEye. FEYE is a cybersecurity company that offers protection to detect, prevent and respond to virus attacks.
They provide various security products to companies worldwide in order to fight off those cyber attacks. The stock had its IPO in September 2013 at $20 and went as high as $97. The cybersecurity sector were investor favorites at the time but became extremely overvalued.
That optimism turned against shares and the stock fell back below its IPO price, languishing to this day. The company, which reports earnings on October 30, is expected to have its first annual profit of 3 cents a share.
In August, the stock got a big 10% boost when Google announced that the company helped find and shut down a network of secret online accounts linked to the Iranian government.