FireEye is the only cybersecurity player on MIT Technology Review’s top 50 list
Earlier in the series, we discussed market expectations from FireEye’s (FEYE) upcoming fiscal 2Q16 results. We also discussed the factors that have contributed to the negative sentiment prevailing around FireEye’s stock.
However, recent news of FireEye’s inclusion in the MIT Technology Review as one of the 50 smartest companies is sure to raise some hope. FireEye is the only cybersecurity company to make this list. Amazon (AMZN), Intel (INTC), and IBM (IBM) were other technology companies that made the list. While Intel is on the lookout to sell its security business, McAfee and IBM want to strengthen their positions in the security space.
Commenting on the selected companies, Jason Pontin, MIT Technology publisher and editor in chief, stated, “Each year we identify 50 companies that are ‘smart’ in the way they create new opportunities.” He further stated, “Some of this year’s stars are large companies that are using digital technologies to redefine industries, while others wrestle with technological changes. Also on the list are ambitious startups looking to make their mark in an existing marketplace or create a new market entirely.”
Under new leadership, FireEye could improve its current position
In fiscal 1Q16, along with the Mandiant acquisition, FireEye announced that Kevin Mandia, founder of Mandiant, will be the CEO of the company. Mandiant, founded in 2004, is a cybersecurity company that has managed cyberattacks on Target (TGT) and Japan-based (EWJ) Sony Pictures Entertainment (SNE). Mandiant went public in September 2013 and soon after was acquired by FireEye for $1.1 billion.
Under the new leadership of Kevin Mandia, it is yet to be seen whether FireEye leverages the growth potential of the cybersecurity space or gets acquired by a bigger company.