What the Equifax Cyberattack Did for FireEye Stock
The rise in data breaches
Prior to the Equifax (EFX) data breach, the world had been rocked by ransomware and malware like WannaCry and Petya this year. These cyberattacks increase the possibility of security-related buying by organizations and governments, boosting cybersecurity stock prices.
These consistent data breaches and the growing demand for app security testing are the primary factors driving the growth in cybersecurity spending.
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The financial repercussions of these cyberattacks, which exploit people’s identities, sensitive data, and system and network vulnerabilities, have led industry analysts to believe that cybersecurity is next in line to rule the global IT (information technology) environment.
Cybersecurity is very likely to be the successor to the SMAC (social, mobile, analytics, and cloud) revolution.
Surge in Symantec and FireEye stock prices
Since September 7, 2017, cybersecurity companies—especially those engaged in identity protection security solutions—have seen a significant boost.
Symantec (SYMC) stock has risen ~11% since the disclosure of the Equifax breach. Its dominance in the rapidly growing cybersecurity space and enhancement of its identity-theft protection capabilities through the acquisition of LifeLock has benefitted the company significantly.
FireEye (FEYE), whose specializations lie in email security, web security, file security, and malware analysis, has also benefitted from the Equifax breach. Since September 7, 2017, FEYE stock has gained ~13%.