Image source: FireEye.

What happened

Shares of cybersecurity specialist FireEye (MNDT) have jumped today, up by 11% as of 2:45 p.m. EST, as last week's earnings-related optimism carries over into this week.

So what

Last week's earnings release also caused shares to soar on Friday. The positive momentum is helping drive shares higher today, as the stock had been pushed to all-time lows the day before third-quarter earnings were posted. With expectations so low, the strong results and ongoing cost discipline are leading to a solid bounce back as investors believe things are turning around. FireEye is on track to launch its new Cloud MVX service later this month.

Now what

It's also possible that the jump is partially related to shorts covering their bearish bets, known as a short squeeze. Heading into the release, short interest was nearly 17% of float as short-sellers drove down the share price. With earnings coming in better than expected, short covering can lead to meaningful gains as the bears bail by buying back shares. The company isn't out of the woods yet; it is still in the midst of transitioning leadership within its sales organization, and the right-sizing of its costs is an ongoing process.