A new tie-up with a huge name in the tech sector was a key factor driving up the price of Commvault Systems (CVLT +6.05%) stock on Monday. The data protection specialist also benefited from general investor bullishness on the tech sector. At market close, Commvault’s stock was up by more than 6%.
A new deal with an old partner
Commvault kicked things off before market open by announcing a new collaboration with an old partner, core Alphabet unit Google. Under the terms of the deal, Commvault’s Threat Scan software will be integrated into the Google Threat Intelligence security solution.
Image source: Getty Images.
Commvault said that with this, it “can help customers transform global threat intelligence into actionable recovery insights, enabling organizations to identify clean recovery points faster and accelerate recovery following cyberattacks.”
The company added that the Threat Scan integration with Google’s solution would be available in the coming months; it did not get more specific. It also didn’t provide any financial details of the new arrangement.
Today’s Change
(6.05%) $7.13
Current Price
$124.93
Key Data Points
Market Cap
Day’s Range
$119.41 – $125.09
52wk Range
$71.75 – $198.18
Volume
563K
Avg Vol
782.8K
Gross Margin
80.26%
Sector on the upswing
This encouraging news came on a day when the war with Iran seemed to — yet again — be headed toward negotiation and potential resolution. When geopolitical tensions ease, investors become less risk-averse, which benefits tech titles seen as relatively risky.
Compounding that, many techies have done well this earnings season, prompting a rally in a sector that has seen plenty of sell-off activity this year.
More and more, security solutions at the enterprise level aren’t just a good idea; they’re a necessity. Commvault is an effective provider of these services, and it clearly knows how to leverage its more fruitful business relationships. Like the many investors buying into the company today, I’d be bullish on its stock too.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.
