KEY POINTS

  • McAfee (MCFE) is worth $8 billion
  • Cybersecurity stocks, as a whole, have fared well this year
  • McAfee reported sales of $1.4 billion for the first half of 2020, representing a 9% uptick from a year prior

McAfee reemerged on Wall Street on Thursday, after a public offering of $20 per share raised $740 million.

However, the cybersecurity software provider’s stock opened Thursday morning below $19, representing a 6 percent dip.

At that price, McAfee (MCFE) is worth $8 billion, as noted by CNN. McAfee, which trades on Nasdaq, had been a public company before Intel purchased it for $7.7 billion in 2011. The McAfee name was briefly dropped but later reinstated after Intel sold a majority stake in it to private equity firm TPG.

McAfee reemerges in an era where demand is great for software that can protect consumers from viruses and other cybersecurity problems. Cybersecurity stocks, as a whole, have fared well this year.

McAfee, which is based in San Jose, California, reported sales of $1.4 billion for the first half of 2020, representing a 9% uptick from a year prior.

However, the company faces challenges, too, evidenced by the fact it’s $4.8 billion in debt. According to CNN, McAfee plans to use nearly $525 million of the proceeds from its stock sale to reduce debt load.

McAfee also finds itself in a competitive industry that features successful competitors like Norton Lifelock (NLOK).

The company was founded in 1987 by John McAfee, who, as noted in a report by Bloomberg, has dealt with multiple legal challenges in recent years. Last year, for instance, he was detained in the Dominican Republic for entering the country with firearms and ammunition.

The firearms charges were announced shortly after the Securities and Exchange Commission sued McAfee for promoting the sale of cryptocurrencies without acknowledging that he was paid to do so. Just weeks ago, he was also arrested on tax-evasion charges for allegedly neglecting to report that income.