In just a few months, IronNet (NYSE:IRNT) went from Reddit stock to forget-it stock. Folks who held its shares either cleaned up or lost their shirts as IRNT stock went on a wild roller-coaster ride this year.
It just goes to show how odd and irrational the stock market has been lately. The share prices of perfectly good companies like IronNet have popped and dropped irrespective of their financials and fundamentals.
That’s fine if you want to own IRNT stock for its short-squeeze potential. However, I suspect that opportunity has already come and gone.
What we’re left with is a fairly cheap stock of a company with an intriguing cybersecurity business. Plus, the firm has a connection with a world-famous company which should pique any tech investor’s interest.
A Closer Look at IRNT Stock
To give you a quick recap, IRNT stock debuted on the New York Stock Exchange on Aug. 27. That happened after IronNet completed its business combination with LGL Systems Acquisition Corp., which used to trade under the ticker symbol DFNS.
Possibly driven by Reddit traders, a massive rally ensued following the merger as the stock rocketed from $10 in late August to $47.50 on Sept. 16.
Then the air was let out of the balloon. Unfortunately, the IRNT stock price sank below $30 and then dropped below $20 before the end of September. Easy come, easy go, as they say. Yesterday the stock closed at $11.29, giving investors who like the company’s prospect a second chance to get in at a low price.
Defending Computers on Land and in Space
As you may recall, the Colonial Pipeline was hit with a ransomware attack in May of this year. That was a terrible incident, but at least it raised awareness of the importance of cybersecurity.
IronNet was around long before the Colonial Pipeline attack, though. Founded in 2014 by a retired general, Keith Alexander, who headed the National Security Agency (NSA), IronNet employs a large number of former NSA cybersecurity operators.
The company’s primary product/service is known as the Collective Defense Platform. IronNet designed Collective Defense to be predictive and driven by artificial intelligence. It offers “the ability for organizations… to share threat intelligence securely and in real time, providing all members an early warning system about potential incoming attacks.”
This technology can be applied not only on Earth, but also in space. To that end, IronNet formed the Collective Defense Community for Space.
That group includes IronNet clients X-energy, Satelles, Axiom Space and Intuitive Machines. Members of the community can share attack intelligence anonymously and in real time, in order to enable collaboration within a secure environment.
Into the Cloud
Speaking of collaboration, IronNet has teamed up with a technology giant which I’m sure you’re familiar with. I’m stunned that IronNet didn’t mention this partnership during its recent management presentation. If I was in charge of the company, I would have written about its Microsoft (NASDAQ:MSFT) deal in 50-point font on the first PowerPoint slide
Specifically, IronNet offers its Collective Defense cybersecurity solutions through Microsoft’s Azure cloud platform. As IronNet explains, “With the Microsoft Azure Sentinel integration, IronDefense can access cloud logs to detect and analyze threats and in combination with IronNet’s IronDome threat intelligence sharing platform.”
Moreover, IronNet recently strengthened its bond with Microsoft by joining the Microsoft Intelligent Security Association (MISA).Truly, the partnership creates a win-win scenario for all of the stakeholders involved.
IronNet’s Collective Defense technology facilitates fast, advanced threat detection. Meanwhile, Microsoft provides a vast user base that can discover IronNet’s cybersecurity solutions.
The Bottom Line
Obviously, the Microsoft collaboration augments the bullish thesis on IRNT stock. Really, though, both companies are benefitting from this arrangement. Folks who hold IRNT stock should also profit from it over the long-term.
So if you want to to capitalize on an opportunity with a premier threat-detection specialist, you should definitely check out IronNet.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
