Palo Alto Networks' Outlook Flops

Plus, Toll Brothers' “luxury niche.”

May 21, 2025

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Today is Wednesday, May 21, 2025.

The Early Bird Index today is 81.17

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Palo Alto Networks' Outlook Flops

Despite posting good financial earnings results on Tuesday, the cybersecurity company Palo Alto Networks $PANW ( ▼ 6.8% ) fell 3.94% in after-hours trading.

Financials: Palo Alto Networks reported earnings of 80 cents per share and revenue of $2.3 billion in the past quarter. Both were better than expected.

Powering the Story: The company expects revenue between $2.49 billion and $2.51 billion in the current quarter. This outlook did not impress investors.

Early Bird’s Nest Egg Gains: Investor expectations for Palo Alto Networks’ current quarter guidance were elevated due to recent strong financial performance, strategic positioning in high-growth cybersecurity segments, and macro trends driving demand for advanced security solutions.

  • Investors have been focused on signs of growth and the company’s ability to capitalize on AI-driven security opportunities.

Final Thoughts: The stock has been decent this year. It is up about 7%, including a 21% gain in the last 30 days.

Notables

Notable Earnings Today: Target (NYSE: TGT), Snowflake (NYSE: SNOW), Zoom Communications (Nasdaq: ZM), Lowe's (NYSE: LOW), TJX (NYSE: TJX), V.F. Corp (NYSE: VFC), Urban Outfitters (Nasdaq: URBN), Canada Goose (NYSE: GOOS), Domo (Nasdaq: DOMO), Wix.com (Nasdaq: WIX), Medtronic (NYSE: MDT), LiveRamp (NYSE: RAMP), Enersys (NYSE: ENS), AMSC (Nasdaq: AMSC), Baidu (Nasdaq: BIDU), ClearSign Technologies (Nasdaq: CLIR), Dycom (NYSE: DY), Full Truck Alliance (NYSE: YMM), KNOT Offshore Partners (NYSE: KNOP), Weibo (Nasdaq: WB), XPeng (NYSE: XPEV).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: N/A.

Notable Economic Events Today: Crude Oil Inventories (10:30 a.m. ET).

Toll Brothers' “Luxury Niche”

Homebuilder Toll Brothers $TOL ( ▼ 0.48% ) jumped 5.07% in after-hours trading on Tuesday after posting good financial earnings results and a positive message.

Financials: Toll Brothers reported earnings of $3.50 per share and revenue of $2.7 billion in the past quarter. Both were better than expected.

Details: The number of homes delivered increased by 10% in the past quarter.

Quote: “Given the shortage of housing and favorable demographics, we continue to believe the long-term outlook for the new home market remains positive, particularly for our luxury niche.” - CEO Douglas C. Yearley, Jr.

Final Thoughts: The luxury niche gives Toll Brothers an edge in the current market, particularly as some competitors struggle.

Take-Two’s New Stock Offering

Video game company Take-Two Interactive Software $TTWO ( ▼ 4.52% ) fell 3.57% in after-hours trading on Tuesday after posting a new public offering of stock.

Details: The public offering, which totals $1 billion in shares, will be used for general corporate purposes.

Final Thoughts: Take-Two is in the middle of a good year with the stock up 29%.

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.