Is FireEye’s Drop an Opportunity or a Red Flag?

FireEye's (NASDAQ: FEYE) third-quarter results turned out to be better than expected, but Wall Street wasn't satisfied with its conservative fourth-quarter guidance. Not surprisingly, FireEye lost over 10% of its market capitalization in a single day as investors pressed the panic button.

However, a closer look at the cybersecurity specialist's results suggests an overreaction on investors' part as FireEye's guidance isn't all that bad. The company is trying to reset expectations after gauging the response to its new security platform, which it believes will eventually lead to bottom-line improvements.

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Source: Fool.com