Our Take
Competitors like CISCO may be taking business from FireEye but its capabilities could make it a desirable stock to buy given selloff after poor 1Q financials.
Shares of FireEye plunged 19% on May 6 after the cybersecurity company posted weaker-than-expected first quarter sales growth and disclosed that CEO Dave DeWalt will resign. DeWalt, a former McAfee CEO who joined FireEye in late 2012, will be replaced by President Kevin Mandia, the founder of Mandiant (which FireEye acquired in 2014), in mid-June.