McAfee: Tech Winners & Losers

McAfee helped some of the other security software firms to rise following news of Intel's big buy.
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NEW YORK (TheStreet) -- Intel's (INTC) - Get Report $7.7 billion offer for software security firm McAfee (MFE) sent shares of other security firms upward Thursday as analysts predicted upside -- and more potential deals -- for the sector.

"Given the premium that

Intel paid, we expect there were likely multiple parties interested in McAfee, which further supports our positive view of security software, especially

Symantec

(MFE)

, which is the most similar asset in the space," wrote Macquarie Securities analyst Brad Zelnick. "We expect this deal will bode well for

Check Point Software

(CHKP) - Get Report

,

Fortinet

(FTNT) - Get Report

,

Blue Coat Systems

(BCSI)

,

ArcSight

(ARST)

and software overall."

In late day trading, McAfee was tech's biggest leader, up about 57% to $47.10. Chief rival Symantec, which is now being

touted as potential acquisition bait

for

IBM

(IBM) - Get Report

or

Hewlett-Packard

(HPQ) - Get Report

, was up 5.96% to $13.32. Check Point was up 42 cents, or 1.23%, to $34.72 and Blue Coat was up 16 cents to $18.63.

Intel, however, was down 3.17% to $18.97 as investors waffled on whether or not the expensive deal will offer upside for the chip maker's longterm strategy. "It's a strange move that investors will no doubt have their trouble getting their heads around," Crawford Del Prete, IDC's executive vice president, worldwide research, told

TheStreet

. "It's one of those that's going to take awhile to see if Intel can do the job while keeping its business strong

as next-generation mobile continues to grow."

Not every security company received a boost. Shares of some smaller security firms were heading in the opposite direction following news of Intel's McAfee acquisition.

Fortinet's

(FTNT) - Get Report

stock, for example, was down 71 cents, or 3.90%, to $17.50, while

ArcSight

(ARST)

dipped 49 cents to $26.98.

Elsewhere in the tech sector, HP shares fell 77 cents to $40.59 ahead of the company's

third-quarter results

later today.

Dell

(DELL) - Get Report

, which reports second-quarter results after market close, saw its stock dip 15 cents to $12.05.

-- Reported by James Rogers in New York

Follow James Rogers on

Twitter.