Breakout

Today's Trending Ticker: Market favorite FireEye sliding

Jeff Macke
Breakout

NOTE: Trending Tickers is an index compiled exclusively by Yahoo Finance every day. It’s a list of companies whose stocks are seeing the biggest bump in interest as measured by your Yahoo Finance Ticker searches.

Making the list of trending tickers today are:

Big Lots (BIG) – up big as the close-out retailer’s top line exceeded street expectations.

Celgene (CELG) – the high-flying biotech name down as traders take profits.

Foot Locker (FL) – jumping as fourth-quarter profit rose 16%.

Safeway (SWY) – down a bit as Private Equity giant Cerberus will buy the grocer and merge it with Albertsons.

And our top trending ticker: FireEye (FEYE)

The cybersecurity firm is selling 14 million shares and it’s going to raise $460 million as the shares are priced at $82. This street is upset because 14 million times $82 doesn’t equal $460 million. It actually equals over $1 billion.

The other nearly $700 million is going to be cashed out by FireEye shareholders. So investors are taking this as an excuse to sell because the company is raising a bunch of money and everyone on the inside is cashing out.

FireEye is up over 125% since going public in September, so its understandable why some insiders want to take profits. The company is essentially raising a half billion in ‘free money,’ and that’s not a bad thing. Take look at Facebook pay $19 billion for WhatsApp, we’ve seen Tesla do a $2 billion convertible offering; the street has been very forgiving of companies raising money to plow back into the business.

The market’s hot, sure you can look at it as a bubble, but you can also look it at as giving smart guys a lot of free cash to build a company. FireEye is down around 7% but still trading around the $82 price for the new offering.

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