Why FireEye, Inc. Shares Fell Sharply

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of cybersecurity technologist FireEye (NASDAQ: FEYE  ) plummeted 22% today after issuing a disappointing short-term outlook.

So what: The stock has plummeted in recent months on concerns over slowing growth, so today's downbeat current-quarter and full-year guidance only reinforce those worries. And while FireEye's Q1 results -- net loss of $101.2 million on a revenue spike of 161% -- managed to top estimates, softer-than-expected license performance is giving analysts some negative vibes over its competitive position going forward.

Now what: Management now sees a full-year loss of $2.10 to $2.30 per share on revenue of $405 million to $415 million, versus the consensus of a $2.03-per-share loss and revenue of $407 million. "We continued to redefine the security landscape as we executed on our strategic roadmap, integrating Mandiant's operations, introducing multiple new products, and expanding our global reach with new reseller and service provider partners," said Chairman and CEO David DeWalt. "As a result, we are a larger, more diversified company, and our security platform has never been more differentiated." More importantly, with a rock-solid balance sheet and severely beaten stock price -- now off about 70% from its 52-week highs -- FireEye's downside might be limited enough to bet on that bullishness.

Warren Buffett just bought nearly 9 million shares of this company
Imagine a company that rents a very specific and valuable piece of machinery for $41,000 per hour (that's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report reveals the company we're calling "OPEC's Worst Nightmare." Just click HERE to uncover the name of this industry-leading stock and join Buffett in his quest for a veritable LANDSLIDE of profits!


Read/Post Comments (3) | Recommend This Article (8)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2947271, ~/Articles/ArticleHandler.aspx, 12/21/2014 12:21:48 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement