Fortinet's 74% Surge Since April Is Attracting Attention, but Is It Sustainable?
The cybersecurity company has crushed the S&P 500 recently, and it may not be done.
Fortinet's 74% Surge Since April Is Attracting Attention, but Is It Sustainable?
Overview
Since the start of May, Fortinet (NASDAQ: FTNT) has rallied by roughly 74% as its cybersecurity software has been attracting new customers, and momentum has been building for its recurring revenue model. Meanwhile, there are major catalysts in play for the whole cybersecurity industry that give Fortinet meaningful tailwinds.
Grand View Research projects a healthy 11.9% compound annual growth rate for the cybersecurity industry through 2033 -- but the opportunities ahead suggest the industry could blow past that projection.
Details
In the realm of cybersecurity, the "attack surface" for an organization is simply the sum total of all the points where a hacker might attempt to gain access to its systems and data, from a laptop to a server to an unsuspecting employee falling for a phishing email. And in its first-quarter presentation, Fortinet management pointed to the expansion of attack surfaces as a "strong, long-term secular tailwind." Artificial intelligence (AI) was listed as one of the factors that is increasing the size of the attack surface for its clients.
Source
Originally published at www.fool.com.
