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Cyber Security Stocks Slowdown

FireEye fell sharply by almost 24 percent on Thursday, after the company reported earning well-below analyst expectations. In fact, FireEye ended up tracking for its worst day ever since its IPO on September 20th in 2013.

Joel Fishbein, Managing Director at BTIG, told CNBC's Power Lunch that he believes the company was squeezed from both inside and out of corporate walls. "Internal execution issues, particularly in Europe, have been inhibiting the broader growth of the company. When coupled with outside factors such as a "smarter" buying environment and greater competition in the US, the European softness takes greater focus in optically destabilizing the perceived trajectory of the company" says Fishbein.

Most other cyber security stocks fell in sympathy of FireEye's disappointing earnings report. BTIG's Fishbein said that he sees the "pull back as a result of a shift in spending." Despite over $25 billion in software spending last year, there were still over 2,000 data breaches. That's a increase from the year prior. "No single technology can stop all threats, and so the corporate challenge today is finding a balance between enhancing the productivity of their employees and securing their networks and sensitive data from attack." Fishbein suggests investors remain selective when assessing the security market, but remains bullish long-term.

"[The] cyber security market remains a top budget priority, as today's threat environment is as treacherous as ever."

Fishbein's buy-rated picks are Barracuda Networks, Imperva Inc., Palo Alto Networks, and Proofpoint.