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Strategies & Market Trends : The New Economy and its Winners

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From: Bill Harmond5/7/2014 10:57:28 AM
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07-May-14 07:57 ET In Play FireEye: Color on Quarter (37.13 ) :

FBR Capital notes, says regarding outlook, management slightly raised revenue guidance for the year, setting 2Q expectations slightly ahead of Street estimates. While they ultimately believe the growth story is in the early innings of playing out, shares could potentially be volatile this morning; the overall quarter/outlook fell short of Street expectations. They think FireEye continues to be in an enviable position in the fertile cyber security market as its end-to-end next-generation/APT platform (also announced nPulse deal last night) has been a "game changer" across the sector.

Topeka notes FEYE's earnings report was characterized by aggressive spending to expand the business and bolting on another acquisition, the latter intended to extend the Company's capabilities in enterprise (network) forensics. While profitability is always a good thing, they believe FireEye has chosen a different path for the short-term, namely, establishing a dominant market position before taking their foot off the gas.

FEYE shares are trading lower by 10% following earnings/guidance
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