Why Palo Alto Networks Stock Dropped on Wednesday

Palo Alto Networks (NASDAQ: PANW) investors just cannot catch a break. Over the past three days, this cybersecurity stock has been downgraded by three separate investment bank analysts, beginning with Guggenheim cutting the stock to sell on Monday, followed up by Deutsche Bank cutting the stock to hold on Tuesday, and (hopefully?) ending with a downgrade to neutral by BTIG this morning.Each successive downgrade has cost Palo Alto stock a few more points of market capitalization. Today, the stock fell 4% to about $168.50 as of 12:40 p.m. ET.New annual recurring revenue (ARR) at Palo Alto "has declined in each of the last five quarters," according to a Guggenheim note cited on The Fly on Monday, and momentum is "softening." Despite this negative trend, Palo Alto shares enjoy "lofty investor expectations," says Deutsche Bank. Although Palo Alto shares are currently lagging the S&P 500's returns, Guggenheim notes the stock is up 40% off its February 2024 lows. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool