The Street’s Jim Cramer on watching FireEye Wednesday ahead of an analyst meeting:
FireEye has an analyst meeting set for Wednesday. Cramer says CEO David DeWalt told a really compelling story when he was on Mad Money recently. He says the stock is about to break out at the $47 level and that means it’s anticipating a very good analyst meeting but he thinks DeWalt has a great story to tell. Cramer says the stock used to be much, much higher and that he expects to see consolidation in this industry. FireEye is going to talk a lot about theft prevention and they’re going to talk about how insurance companies are selling FireEye as part of a policy in order to be able to limit the liability of cyber terrorism.
I have yet to really understand why people are up in arms over FireEye, a company that is basically just a one-trick pony. Sure, their Mandiant incident response services are almost unparalleled, however, the FireEye sandboxing product offers no compelling capabilities, and their product line is severely limited. They have not shown any ability to sell anything other than a sandboxing product so its hard to believe the company can do anything else successfully.
Disclosure: I work for Intel Security, a FireEye competitor.