Publish date:

McAfee: Tech Winners & Losers

McAfee helped some of the other security software firms to rise following news of Intel's big buy.

NEW YORK (TheStreet) -- Intel's (INTC) - Get Intel Corporation (INTC) 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



, 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 Check Point Software Technologies Ltd. Report



(FTNT) - Get Fortinet, Inc. (FTNT) Report


Blue Coat Systems





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



(IBM) - Get International Business Machines (IBM) Report

TheStreet Recommends



(HPQ) - Get HP Inc. (HPQ) 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


. "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.


(FTNT) - Get Fortinet, Inc. (FTNT) Report

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



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) - Get Dell Technologies Inc Class C 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