The Cloud Powers Fortinet Higher During the Coronavirus Lockdown

In the midst of the coronavirus-induced market meltdown in March 2020, cybersecurity outfit Fortinet (NASDAQ: FTNT) got hammered like most stocks. Shares tumbled some 37%, getting swept up in the worry that business would be heavily disrupted by the crisis. But then a funny thing happened. 

As households around the world began to shelter in place and the work-from-home movement picked up steam, a new reality set in: The digital world, especially cloud computing-based services that can be accessed remotely, was going to be just fine. Perhaps even better than "fine." As a cybersecurity leader -- including in the cloud-based security front -- Fortinet shares rallied back to previous highs and then some. The stock is now up 29.8% year to date, compared to a negative 9.8% return for the S&P 500, after reporting accelerating sales growth during the first quarter.  

Management's outlook remains optimistic as the company's services are in high demand. Far from getting disrupted by the coronavirus, the pandemic has solidified Fortinet's importance in a new digital era where the cloud is a rule rather than an exception.

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Source Fool.com