Updated Dec. 28, 2020 6:16 pm ET
Going from predator to prey back to predator again has been a profitable ride for FireEye investors. How it works out for the company itself remains to be seen.
High-profile network breaches have often been a boon for cybersecurity stocks, and the massive SolarWinds hack has been no exception. The NYSE FactSet Global Cyber Security Index has jumped 12% since the attack was reported on Dec. 13. The 12 largest pure-play vendors on that index are now up an average 18% in that time, based on Monday’s closing prices.
The attack used a flaw in the network-management software sold by SolarWinds, a Texas-based IT company that counts many federal agencies as customers. But ironically, it was brought to light by FireEye, which specializes in hack investigations and was itself a victim of the attack.