Antimalware Vendor Gets Nod From Wall Street
FireEye, which has been gaining attention for its white-hot antimalware detection system, was one of the most anticipated tech IPOs of 2013, and FireEye's IPO on Friday exceeded expectations. The Milpitas, Calif.-based security appliance maker valued its IPO at $20 per share, and Wall Street investors have embraced the company's stock. It ended its first day of trading with gains of 80 percent at $36.00 per share.
FireEye uses a sandboxing approach to isolate and inspect the behavior of suspicious files. Security experts told CRN that while FireEye's technology is a much-needed alternative to traditional signature-based defenses, technology vendors are already implementing similar sandboxing and cybercriminals are developing ways to thwart it.
Here are five reasons security experts say Wall Street may be overvaluing FireEye's technology.