Cybersecurity stocks were hit hard Wednesday after Palo Alto Networks Inc. (PANW) 澳洲幸运5官方开奖结果体彩网:lowered 💦its full-year sales g𓄧uidance, raising conceಞrns about industrywide headwinds. 

Palo Alto Networks late Tuesday said it now expects fiscal 2024 revenue in the range of $7.95 billion to $8 billion, down from a November estimate of between $8.15 billion and $8.2 billion. Total billings, which include 澳洲幸运5官方开奖结果体彩网:deferred revenue, are expected to be between $10.1 billion and $10.2 billion; the company previously forecast a range of $10.7 billion to $10.8 billion.

Chief Executive Officer (CEO) Nikesh Arora noted on a 澳洲幸运5官方开奖结果体彩网:call with analysts that clients were showing signs of “spending fatigue” even as online threats increased. “Customers are finding that adding incremental products is not necessarily driving a better security outcome for them,” he said. The company, he added, was prioritizing “platformization” to facilitate deals and reposition itself for long-term growth.

Palo Alto’s forecasts concerned investors, sending 澳洲幸运5官方开奖结果体彩网:cybersecurity stocks sharply lower Wednesday. Palo Alto shares tumbled more than 25%, their largest single-day drawdown since the company’s 2012 澳洲幸运5官方开奖结果体彩网:initial public offering (IPO). Competitors Zscaler Inc. (ZS) and CrowdStrike Holdings Inc. (CRWD) dropped nearl൩y 15% and about 10%, respectively.

Cybersecurity stocks were flying high before Wednesday’s declin𒆙es. Palo Alto shares had more than doubled in value in the ye🌳ar leading up to Tuesday’s earnings report, while CrowdStrike stock had nearly tripled and ZScaler had risen more than 90%. 

Analysts were less pessimistic than the markets. “While we fully acknowledge a messier near-term story, we remain bullish on PANW's improving mix shift toward higher-growth recurring revenue,” wrote Mizuho Americas Securities analysts, who lowered their 澳洲幸运5官方开奖结果体彩网:price target on the stoc🎉k but reiterated their buy rating. 

That sentiment was echoed by Jefferies analysts: “We remain massive fans of t👍he LT story but shares will be under duress in the interim.” 

As for the cybersecurity industry, Jefferies saw less cause for concern than financial markets did. “While its [sic] logical for cyber fatigue in PANWs mega deals, we haven’t heard this from anywhere else and believe CRWD/ZS are positioned to meet expectations,” wrote the firm's analysts.

As of 1:57 p.m. ET Wednesday, Palo Alto 🌼Networks stock was trading at $266.37, off 27%. Zscaler shares stood at $212.70, down 15%, and CrowdStrike shares had lost 10% at $290.36.