Technology has advanced extremely fast in the last decade. We all benefited from the convenience that was created by technology. However, nothing is perfect; it also comes with bad things from time to time. There have been a couple very serious malwares attacks around the globe so far in 2017. WannaCry and Petrwrap were two malwares responsible for these attacks. Basically, they took computer systems hostage and asked for ransom money. The victims are spread around the globe and across different industries, including banking, transportations and governments etc.
More people than before recognize the importance of cyber security. It is not a bad time to invest into some of the cybersecurity firms in the market. FireEye Inc. (FEYE) is on our investing list. It provides products and services to prevent advanced cyber threats. It has some ups and downs in the last two years. It is currently trading at $15.60/share. It has performed pretty well this year. The sales revenue was up 3% from previous Q. It is up about 29% year to date. Its total debt is around $750M. However, the debt could easily be covered by its current assets, which are around $1080M. In a market expected to be worth $232B by 2022. There is still huge growth potential for companies like FireEye Inc. For cautious investors, you can still wait and see after the Q2 ER, which is coming out on August 1st.
Check Point Software Technologies Ltd. is also on our watch list. It will be further discussed in the future post.
P.S. I have a position in FEYE.