Fortinet Is Building a New Cybersecurity Service With Google Cloud -- Time to Buy This Beaten-Down Stock?

Big cybersecurity pure play (NASDAQ: FTNT) took a beating after its last earnings update in August 2023. After a hot growth streak during the pandemic-fueled cycle of data center upgrades (in support of a big pivot to cloud computing), Fortinet is slowing down. Investors took the opportunity to take some profit in the richly valued stock.

But Fortinet isn't idly sitting by and hoping that its unified network security hardware and software business will rebound. The company has been quietly making a push into a new realm of cybersecurity, and it just announced a new partnership with Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG) Google Cloud to further its efforts. Is it time to buy the dip in Fortinet stock?

Fortinet has long had a secret weapon in the cybersecurity market. Not only does it design firewalls -- network security devices that monitor network traffic -- but it also designs proprietary chips that power them. It calls these security Processing Units, or SPUs, a type of CPU customized for security purposes.

Continue reading

Source Fool.com