On May 27, Palo Alto Networks fell 3.26% in pre-market trading, trading at 248.6 USD/share, with trading volume of approximately $1.69 million.
On the news front, cybersecurity peer Zscaler plunged over 23% on the same day, severely pressuring sector-wide sentiment. The selloff comes as Palo Alto Networks is scheduled to report its latest quarterly earnings on June 2, amplifying a wait-and-see mood among investors. Within the Systems Software sector, Zscaler dropped 23.51%, while Microsoft fell 0.42% and Oracle dipped 0.17%.
Despite the near-term headwind, the fundamental backdrop remains constructive. Morgan Stanley noted that channel checks indicate strong demand for firewall refresh cycles, with partners reporting results in line with or above expectations. The firm expects fiscal Q3 remaining performance obligations to grow approximately 33% year-over-year. Market consensus projects quarterly revenue of roughly $2.944 billion, representing 29.28% year-over-year growth. Multiple investment banks recently raised their price targets, including Wells Fargo to $285 and Evercore ISI to $320, both maintaining outperform ratings.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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