Fortinet's Latest Acquisition Is Further Proof Cloud Is the Future of Cybersecurity
The redundancy crisis brought on by the COVID-19 economic lockdown has sent already high-flying cloud-based security stocks soaring. Firms like CrowdStrike Holdings (NASDAQ: CRWD) and Zscaler (NASDAQ: ZS), services that were born in and cater to modern cloud computing-based operations, have gotten a boost as organizations try to deal with shelter-in-place orders and a suddenly dispersed workforce. The two stocks are up over 110% and 170%, respectively, so far in 2020.
But flying below many investors' radar is Fortinet (NASDAQ: FTNT). The legacy security vendor is up "only" 25% so far in 2020 as it makes its own migration to the cloud.
Compared to other large cybersecurity incumbents like Palo Alto Networks (NYSE: PANW) that have been making splashy acquisitions to update for the times, Fortinet has mostly taken a quieter organic approach by developing new services in-house. Fortinet recently made a rare move, though, acquiring cloud security outfit OPAQ Networks.
Source Fool.com
