Palo Alto Networks Inc (NASDAQ:PANW) stock is trading lower on Wednesday.
The decline stems from negative industry spillover after cybersecurity peer Zscaler Inc (NASDAQ:ZS) issued a softer fiscal fourth-quarter guidance during its earnings release.
Zscaler Guidance Sparks Sector Sell-Off While Zscaler beat third-quarter expectations with revenue of $850.48 million and adjusted earnings per share of $1.08, its fourth-quarter revenue outlook of $875 million to $878 million fell short of the $878.53 million consensus estimate.
Management attributed the impact to recent sales leadership transitions, pulling down the broader cybersecurity sector in sympathy.
Wedbush Defends Palo Alto Networks Despite the market anxiety, Wedbush Securities analyst Dan Ives dismissed fears of a broader sector slowdown in a Wednesday industry note.
