Is FireEye’s Rally Here to Stay?

FireEye (NASDAQ: FEYE) investors have been disappointed this year as the company has failed to capitalize on the jump in cybersecurity spending in the wake of the coronavirus pandemic. Canalys forecasts a 5.6% increase in cybersecurity spending this year to $43.1 billion as organizations look to tackle the challenges brought on by the the increase in remote work environments.

The research firm estimates that cybersecurity spending in 2020 could outpace the overall economy. The bad news is that FireEye doesn't seem to be in a position to take advantage of that growth. The company's recent results and outlook have failed to assure investors that it can thrive in such a competitive industry. Even then, FireEye stock has made a nice recovery from the bottom it hit in March, gaining over 60%.