F5 Networks, Inc. (FFIV), Netflix, Inc. (NFLX): This Company Is In The Sweet Spot Of 2 Huge Internet Trends

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A big part of my job as managing editor of StreetAuthority involves talking with our premium newsletter experts to get a sense of what they like in the market, where they think it’s headed and how they plan to help their followers profit.

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Today’s pick comes courtesy of Amber Hestla.

As a former U.S. military intelligence analyst, Amber Hestla learned how to analyze data to predict outcomes. These days she applies those skills to financial markets for ProfitableTrading.com, a StreetAuthority sister site. Amber’s specialty is generating income using options strategies that minimize risk. In her advisory, Income Trader, Amber uses a step-by-step approach to guide readers through the options market in search of the best income plays each week.

So far, so good: Every trade that Amber has closed in Income Trader since the first issue in early February has been a winner — that’s one winning income trade a week since Feb. 6.

Here’s more from Amber:

A Company Whose Coffers are Benefiting from Two Internet Megatrends
There are two undisputed Internet megatrends — growing worldwide usage and the need for tighter security.

F5 Networks, Inc. (NASDAQ:FFIV) benefits from both.

The company’s flagship product, F5 BIG-IP 5000, is a high-performance “switch” — a device that manages data for large networks. Customers include cell phone network operators such as AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ). Major network software providers, including Microsoft Corporation (NASDAQ:MSFT)Oracle Corporation (NYSE:ORCL) and SAP AG (ADR) (NYSE:SAP) also utilize F5 Networks, Inc. (NASDAQ:FFIV)’s wares.

This equipment acts as a gateway between users and the data servers, while maintaining security.

As a way to visualize these services, think about connecting to Netflix, Inc. (NASDAQ:NFLX). You request a movie, and the switch decides which of the Netflix, Inc. (NASDAQ:NFLX)’s servers should deliver that movie to you. The switch is responsible for finding a server not being fully utilized to send your request so that it can be processed quickly.

It also defends against so-called distributed denial-of-service (DDoS) attacks, which try to overwhelm a company’s servers and prevent legitimate users from accessing service. A recent survey found that more than a third of large companies experienced a disruptive attack in 2012. More than a quarter of the attacks led to costs between $50,000 and $100,000 an hour, with the average attack lasting more than 30 hours.

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