Dallas, Texas 04/28/2014 (FINANCIALSTRENDS) – FireEye Inc (NASDAQ:FEYE) which is a niche security platform provider saw its share price drop by a steep 7.3 percent on the last day of previous trading week. The selloff in the stock occurred even as news emerged that the medium cap tech firm head quartered in Texas has signed up for additional office space on the West Coast to cater to its growth in its employee strength in Silicon Valley.
With the latest addition of 53.000 square feet of floor space, reported on 25th April, the total space ownership of the $6 billion market capped firm has gone up to 200000 sq feet. Generally, the news of adding of office space in the tech sector means that a company is looking to increase head count and is considered a positive move, the stock suffered a sell off at the markets on the back of the news.
The selloff in the stock of FireEye Inc (NASDAQ:FEYE) comes on the back of an adverse analyst report taken out by security services and technology research firm NSS labs. The testing firm had panned specific “real time” security solutions on offer by the Texas based firm and had compared it unfavourably in comparison to its peer offerings. The report went on to label FireEye Inc (NASDAQ:FEYE) as flawed.
In its defence FireEye Inc (NASDAQ:FEYE) management disclosed that they had withdrawn their solution from the testing process after they learnt that the testing lab was using an outdated version of malware to test out the defences of its security platform.
It is relevant to note here that FireEye Inc (NASDAQ:FEYE) had released its own version of annual report titled “beyond security breach” which compiled the latest cyber security risks associated with enterprise companies. The report also threw light on the emerging new threats in the cyber space today.