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Palo Alto Networks’ Profit Outlook Dims on Acquisition Costs, Stock Slides
Palo Alto Networks’ Profit Outlook Dims on Acquisition Costs, Stock Slides
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BTCCSquare news:
Palo Alto Networks shares tumbled 6% to $153 after the cybersecurity firm cut its full-year profit forecast. The company now expects adjusted EPS of $3.65-$3.70, down from $3.80-$3.90, citing integration costs from recent acquisitions including its $25 billion CyberArk purchase.
The stock became the worst performer in both the S&P 500 and Dow indices despite broader market gains. Morgan Stanley analysts called the sell-off "overdone," maintaining their overweight rating while trimming their price target from $245 to $223.
This marks another blow to software stocks as investors punish companies for growth-at-all-costs strategies. The cybersecurity sector faces particular scrutiny as acquisition sprees collide with rising operational costs.
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