FireEye’s improved earnings and transition toward SaaS
Improved growth and earnings and a renewed focus on cybersecurity have acted as catalysts for FireEye’s (FEYE) stock rise of ~42% YTD (year-to-date). FireEye’s fiscal 2Q17 results and its guidance for the current quarter exceeded analysts’ expectations.
FireEye’s transition to the SaaS (software as a service) model bodes well for its future, as research firms expect a continued surge in SaaS and massive growth in cloud security spending.
Geopolitical conditions affect FireEye and peers more than they do other technology companies because geopolitical conditions drive hacking and cyberattacks.
The need for updated security solutions
High-profile hacks, including the recent Equifax, Petya, and WannaCry ransomware attacks are proof of this. These cybersecurity attacks impacted companies and governments all around the world, triggering cybersecurity spending.
These attacks have thus acted as growth catalysts for cybersecurity the following players: