Symantec Update: Stock Shimmies on EU Noise, Enterprise Storage & Security Software
Symantec (NASDAQ:SYMC), like most other companies in technology sector, has seen its stock slide in the past couple of weeks. As the European debt crisis triggered a broad market selloff, tech stocks were among the first to get dumped. In the past few days we have seen a recovery in tech stock on the prospects of a new EU deal and the coordinated efforts of global central banks. Below we look at some updates for Symantec.
Symantec generates almost all its revenue from storage and security software. It recently announced that it intends to focus on cloud and tablet security solutions for revenue growth in the coming years, as more and more enterprises gravitate towards tablets and cloud computing.
Check out our complete analysis of Symantec.
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There haven’t been many significant developments related to Symantec in the last two weeks, except these:
Symantec announced that it had sold its stake in Huawei Symantec Technologies, its joint venture with Huawei, for $530 million. The joint venture was formed primarily to integrate Symantec’s storage and security software into network hardware built by Huawei for enterprises.
Exiting the investment gives Symantec a 250% profit on the $150 million it initially invested, and will also help it improve its profit margins, which were being dragged down by the joint entity. We don’t expect it to have any significant impact on Symantec’s stock.
We have a $22 Trefis price estimate for Symantec, which stands nearly 35% above its current market price.
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