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Gigamon Talks Up Security, Amazon Public Cloud At Analyst Day

Gigamon ( GIMO ) expects its push into security products to gain traction as corporate spending shifts from prevention to detection and containment. Management delivered that message at the company’s analyst day on Tuesday, during which Gigamon also highlighted plans to support public clouds, starting with Amazon Web Services, part of e-commerce giant Amazon.com ( AMZN ). Amazon stock hit an all-time high on Tuesday and has been on a roll since the company posted its Q1 earnings beat on April 28. The IBD Leaderboard stock, however, is extended from both its 603.34 entry and its 638.11 alternative entry, trading Wednesday morning near 708, up a fraction. “In conjunction with its investor day, Gigamon announced field trials for a network visibility product that will work in cloud environments, particularly with Amazon Web Services,” Mark Kelleher, an analyst at D.A. Davidson, said in a research report. “This new product will provide tools vendors with information on data flows, between customer devices within a public cloud, private cloud or hybrid cloud environment. “While initially targeted at the AWS environment, GIMO expects to expand to other public cloud environments, such as Microsoft ( MSFT ) Azure and Alphabet ’s ( GOOGL ) Google. Meaningful revenue from this new offering is not expected until 2017.” Gigamon stock, however, was down 2% in early trading in the stock market today , near 30. Gigamon shares broke out March 11 at a 29.62 buy point, and so they remain within buy range. Gigamon’s roots are in selling communications network hardware appliances that analyze and manage data traffic, but it’s been expanding into security. “Management believes breaches are inevitable, and thus dollars will shift from prevention to detection/prediction/containment — which is where Gigamon plays,” Jason Ader, a William Blair analyst, said in a report. “The network is the most content-rich source of information for all kinds of security tools as the network touches everything, including users, devices, and applications. “But historically, the network was used mainly for connectivity. GigaSecure can look at all traffic and extract the right information and feed it to the right security and analytics tools.” Gigamon stock is up about 13% in 2016 so far. It reported Q1 earnings and revenue that topped estimates, and its shares touched a two-year high at 35 on April 29. Gigamon has an IBD Composite Rating of 95 out of a possible 99, putting it among the top 5% of all stocks in key metrics such as earnings and revenue growth.

Viking Horde Malware Zombifies Phones Via Google Play: Check Point

The Walking Dead trope has nothing on the Viking Horde. On May 5, No. 1 cybersecurity firm Check Point Software Technology ( CHKP ) notified Alphabet ( GOOGL )-owned Google Play of an Android malware campaign that could affect 50,000 to 100,000 smartphones, researcher Jeff Zacuto told IBD on Tuesday. Coined Viking Horde, the malware stems from downloads of five Google Play apps — Viking Jump, Memory Booster, Parrot Copter, Simple 2048 and Wi-Fi Plus — uploaded to Google Play between March 29 and April 15. Late Tuesday, Memory Booster still turned up on a search of Google Play. Google didn’t respond to a request for more information. Together, the five malware-riddled apps have been downloaded 50,000 to 100,000 times, Zacuto said. The Viking Horde malware is completely transparent to the user, but adds the device to a growing botnet programmed to simulate ad clicks for revenue. “It just appears to be a harmless game on your device, but what was actually happening in the background was the malicious code was turning the devices into zombies,” he said. “It made them part of a botnet.” A botnet, or a zombie army of computers, is programmed to transmit data without a user’s knowledge. On a grand scheme, botnet campaigns are far more common to PCs, Zacuto said. The Viking Horde botnet takes advantage of clicks-for-revenue advertising. “I (a website owner) contact one of these groups and say, ‘Hey, could you do me a favor to do some fake ad-clicking for me and in exchange I’ll give you some of the revenue?’ ” Zacuto said. The majority of the downloads (44%) were out of Russia. Of the remainder, 10% were in Lebanon, and the U.S. and Mexico each accounted for 8% of the downloads. But there’s no way to quantify the number of infected devices. Beyond ad fraud, the Viking Horde malware is persistent, Zacuto said. Out of the box, most phones are unrooted, meaning the user can delete the infected app. But on rooted phones — where a user has more control — the malware installs additional components using sneaky names. “It will install components that have names that look like they’re supposed to be there,” he said. “On a rooted device, it can also install additional components that say, ‘Someone is trying to remove this app, let them remove it, but once that’s done reinstall it.’ ” Oftentimes, the app (and malware) will reinstall in a hidden place. Typical mobile anti-virus won’t detect the malware, Zacuto said. And most users won’t note the malware unless they recognize suspicious activity, such as the app’s request for access to root permissions. Furthermore, it can install a program that automatically downloads any malware updates to the app, leaving the door open for additional fraud, Zacuto said. On a rooted device, that means a user either has to buy an entirely new smartphone or perform a hard reset. “On the rooted device since you’ve opened up the ability to do anything on the device, you’re also giving the attacker the ability to do that as well,” he said. “They can steal information from your device, they can jam your data traffic, they can turn on the camera, the microphone.” He added: “They really have the ability to do anything they like.”

Amazon Hits New High As Market Cap Nears $332 Billion

Amazon.com ( AMZN ) stock hit a record high of 704.55 Tuesday, passing its previous high of 696.44 set on Dec. 29 and giving the e-commerce giant a market valuation near $332 billion. The stock ended the regular trading session up 3.4% to 703.07 on the stock market today . Amazon has gained 62% in the past year. The jump comes as Sanford Bernstein analyst Carlos Kirjner raised his price target on Amazon to a whopping 1,000, which is 47% above its close of 679.75 on Monday. IBD’s Take: How healthy is Amazon’s stock and how does it compare to rivals? Find out at IBD Stock Checkup “We think Amazon’s businesses are now so large, fast-growing, and profitable that it is harder and harder for the company to find new areas of investment to keep up with the growth in gross profits,” Kirjner wrote in the report, according to a report from Bloomberg . Among areas of investment and growth is Amazon Web Services, its cloud computing unit that’s on pace to reach $12.5 billion in revenue this year. And thanks to its early entry in the business, AWS is now the leader in cloud computing, with a market share of 31%. The next closest competitor is Microsoft ( MSFT ) with 9%, followed by IBM ( IBM ) and Alphabet ‘s ( GOOGL ) Google Cloud. Among analysts polled by Thomson Reuters, 11 have a strong buy rating on Amazon, 28 say buy and 4 say hold. The move up in Amazon comes as the company on Tuesday announced a new platform on its streaming video service that goes head-to-head with Alphabet-owned YouTube. The new platform, called Amazon Video Direct , lets anyone upload clips or their own licensed videos. Alphabet, which hit an all-time high of 810.35 on Feb. 5, rose 1.4% to 739.38 on Tuesday.  Alphabet posted its fifth straight gain, but it is still below its 50-day moving average.