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 specialist Sourcefire (UNKNOWN:FIRE.DL) rallied as much as 10% in anticipation that President Obama will sign an executive order bolstering the United States' cybersecurity spending.
So what: With the president set to deliver the State of the Union address this evening, a report from Bloomberg based on information from two White House officials appears to indicate that the president will sign an action to bolster U.S. cybersecurity measures shortly after his State of the Union address. With Sourcefire's revenue so intricately tied to government spending, it would probably be a beneficiary of increased cybersecurity spending.
Now what: Following an attack on the Department of Justice's website, it seems all but assured that the president will demand more be spent on protecting our nation's most sensitive government sites. Sourcefire, and most of the Web security sector, look poised to benefit over the coming years as malware and hackers have become more advanced. In essence, the software and services these companies provide are rapidly becoming a necessity, not an option, and this could be the beginning of yet another uptrend for Sourcefire.
Craving more input? Start by adding Sourcefire to your free and personalized Watchlist so you can keep up on the latest news with the company.