Fortinet announced earnings growth with year over year gains of 30%. This beat caused Fortinet stock to rise nearly 7%.
Fortinet chairman was quoted as saying “Our proprietary FortiASIC security processing unit can deliver 10 times the VPN throughput capacity of comparable competitor solutions to support teleworkers,” Fortinet Chief Executive Ken Xie said in a news release. “This significant competitive advantage is one reason we believe we will continue to gain market share during a period of tougher economic conditions.”
Companies like Seeking Alpha have become increasingly optimistic on Fortinet.
They are quoted as saying – The coronavirus pandemic has opened up the possibility for many workers to work from home, increasing the needs for companies that offer cloud-based solutions, especially in cybersecurity. This leads me to Fortinet, Inc. (NASDAQ:FTNT). Even at nearly 9x revenue and 39x forward earnings, Fortinet is only now fairly valued and will be a winning stock due to its market leadership, product innovation, and growth in enterprise customers.
There is an incredibly interesting take that the Enterprise is due to replace the SMB
Other organizations haven’t been so lucky. There have been rumblings of massive misses by other SD-WAN and network providers. Also anticipated leadership changes coming quickly for organizations that carry debt loads due to M&A and equity positions. Look at companies like GTT to have issues in this current climate.