FireEye Inc (FEYE): One Stock To Watch

“It’s obviously become a real issue and it affects people, it affects corporations, and what we’re finding is we’re coming to the game as industries, as a country, as a global environment, a little bit late,” William Nolte, former director of education and training in the office of the Director of National Intelligence and a professor at the University of Maryland, told Money Morning.

What the business community’s negligence in the sector has done over the last decade is allow for cybersecurity products to develop in a scattered, disorganized manner. Businesses looking for different cybersecurity needs would be forced to buy from several different vendors with little in the way of industry standards.

And that’s where we find ourselves now.

Cybersecurity isn’t an exact science. No one knows who will create the best solution. And for each new solution, there’s a new threat.

But Wall Street rejoices when one company buys another and begins to work toward uniting disparate cybersecurity solutions under one banner.

And that’s why FireEye stock got such a bounce yesterday on the Cisco rumors. It’s also why it faltered when those rumors were rebuffed.

The Bottom Line: Wall Street hasn’t yet decided which cybersecurity stocks to invest in. A lot of cyber defense products are still too new to understand. And for every cybersecurity solution, there is going to be a hacker who will find a way to breach it. There will be a lot of M&A in the sector – which makes FireEye stock one to watch. For now, investors looking for a good pick are best going with a cybersecurity ETF.

Money MorningWritten By Jim Bach From Money Morning

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