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Fireeye Stock Price: Cyber Security Experts & Solution Providers

There are some great cybersecurity companies out there, but are cloud service providers making better investments than more traditional device-based security vendors like FireEye (MNDT -0.67%)? In this Fool Live video, recorded on May 28, Fool analyst Tim Beyers and development director Anand Chokkavelu discuss FireEye's business model and why they ranked seventh out of seven major cybersecurity actions.

Anand Chokkavelu: Let's move on to number 7. Tim, it's FireEye. Tell us all about it.

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Tim Beyers: I think of FireEye classically as a firewall company. I don't know that either. He has a certain intelligence. There are various security companies out there, and this is one that has historically been device companies, and that has been a weak security field. Since I don't have very in-depth knowledge of FireEye, I want to talk about where this fits. When you are a device and you fit into a network and you try, say, to defend the network, you want to be able to cover most of the threat landscape. If you are just a device, you only really protect that part of the threat landscape where the device is located. I think this is one of the real weaknesses of FireEye and all device-based companies, and I think we have three of them on this list. When I think of FireEye it was really promising some six to eight years ago as a company, and it's still not a bad company. The problem is, you want more than just good protection devices. When I think of FireEye I think it's good for what it does, but that's very limited by the fact that it's primarily a device manufacturing company trying to go out and become a cloud security service provider. The problem, when you try to defend yourself from the cloud, you have to defend yourself to the end, the device outside, because we all log into the internet. There is really only one place where we all log onto the internet, and that is our computer or phone. We start there and then there is a principle that I am going to cover as I think we will talk about it, it is a little bit more related to cloud security. I think FireEye feels a bit, it's brutal, I hate to say it because I don't like to slander companies, but I feel like it's a 20th century security technology. It's so unfair. Their technology is better than this, but the world has changed materially and I don't think the technology has kept up with it, Anand.

Chokkavel: It makes sense. You're opposed to competitors that didn't exist a few years ago, so they're gonna be up to date, right?

Beyers: Yes.