Cybersecurity Follows Palo Alto's Lead

Markets Benzinga

Palo Alto Networks Inc (PANW) slid 10 percent pre-market Friday morning, as the market continued to digest its third-quarter earnings report.

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A Disappointing Report?

Although it beat on revenue and met EPS estimates at $0.42, guidance for the fourth quarter was about what analysts expected, leaving some investors disappointed, being used to the next-generation cybersecurity company providing guidance much higher than estimates.

Related Link: Expect Near-Term Palo Alto Volatility; Goldman Sachs Still Bullish

Sympathy Moves

Other names in cybersecurity taking a sympathy dip Friday morning premarket included FireEye Inc (FEYE), down 2 percent, and Fortinet Inc (FTNT), down 1 percent.

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When Palo Alto last reported earnings back in February, with healthy guidance accompanying it, the stock rose 10 percent. Shares of cybersecurity stocks like FireEye moved in-step with Palo Alto then also, gaining 4 percent the day after Palos February earnings release. PureFunds ISE Cyber Security ETF HACK (HACK) rose as well, by 1 percent.

Palo Alto shares traded at $148.18 an hour before the market was set to open Friday morning.

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