NEW YORK (TheStreet) -- Shares of FireEye (FEYE) - Get Report were gaining in late-morning trading on Friday after Yahoo! (YHOO) confirmed yesterday a breach of more than 500 million user accounts in 2014.
Shares of FireEye, a Milpitas, CA-based cybersecurity solutions provider, advanced more than 5% yesterday following the announcement.
Yahoo! said that a "state-sponsored actor" stole users' names, phone numbers, email addresses, birth dates and hashed passwords in the attack.
The Yahoo! hack shows the importance of security companies like FireEye, Piper Jaffray said in a note cited by Barron's.
The firm mentioned that Yahoo! "has one of the most sophisticated security infrastructures in the world."
"As such, this breach should be an eye-opener to all other enterprises regarding the need for increased spending on security," the firm noted.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "sell" with a ratings score of D.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: FEYE