Helix and surge in cyberattacks provided a fillip to FEYE’s stock
So far in this series, we’ve discussed the factors that could make FireEye (FEYE) a potential target for Microsoft (MSFT) as well as its dominance in SIEM space—one of the fastest-growing subsegments of security space. In this part of our series, we’ll see how FireEye stock has performed over the past year.
FireEye launched Helix in early 2017, which spurred upgrades from several industry analysts and research firms like Morgan Stanley (MS) and Goldman Sachs (GS). Helix is FireEye’s comprehensive security platform that integrates the MVX engine, threat prevention, analytics services, and iSIGHT intelligence on a single platform.
The adoption of new offerings like the Helix platform and cost-cutting initiatives were the key reasons for Morgan Stanley’s optimism in the company’s early turnaround. The increase in cybersecurity spending, deal wins, and strong product line-ups could all boost FireEye’s momentum in the long run.
The chart above shows the result of a survey conducted by Morgan Stanley (MS) for FireEye’s NX security offering. Approximately half of the customers who currently have NX appliances plan to refresh in 2018.
Meanwhile, data breaches like Equifax and sophisticated cyberattacks like WannaCry and Petya have highlighted the inability of organizations to shield themselves from evolving cyber threats. These cyberattacks urged companies and governments to reevaluate their security procedures and purchase competitive security offerings to avoid falling victim to these attacks in the future, which has caused a surge in cybersecurity companies like FireEye.
FireEye stock’s performance in comparison to the S&P 500
Despite several ups and downs last year, FireEye stock has risen more than 11.4% YTD (year-to-date). During the same period, the S&P 500 Index (VOO) has risen ~23.8%. Notably, calendar 2017 was a particularly stellar year for the tech-heavy (QQQ) S&P 500 Index.
HACK is the first ETF in the market that focuses on cybersecurity. It has a portfolio of 32 cybersecurity stocks and invests ~5% of its portfolio holdings in FireEye. In the past year, HACK has risen 17.7%.