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Palo Alto Capitalizes on Fear
Shares of Palo Alto Networks (Nasdaq: PANW) jumped 11.03% in after-hours trading on Thursday after the cybersecurity company posted positive financial earnings.
Financials: Palo Alto Networks reported earnings of $1.79 per share and revenue of $1.4 billion; both were better than expected.
Outlook: The big reason for the surge in stock price? It was Palo Alto Networks’ guidance. The company sees revenue in the current quarter between $1.53 billion to $1.55 billion and earnings per share between $2.26 to $2.29; both were better than expected.
Quote: "We saw strong top-line growth in Q3, which is a testament to our teams' consistent execution in capitalizing on the strong cybersecurity demand trends." - Nikesh Arora, chairman and CEO of Palo Alto Networks.
Big Picture: With companies and governments afraid of cybersecurity threats, Palo Alto is taking advantage of the environment. Other cybersecurity stocks also ticked up due to Palo Alto’s earnings. Fortinet (Nasdaq: FTNT) went up 2.85% in after-hours trading on Thursday, CrowdStrike (Nasdaq: CRWD) went up 4.11%, and Zscaler (Nasdaq: ZS) went up 3.97%.
Numbers: Palo Alto’s stock hit an all-time high in April, but has since plummeted 30% due to the larger tech stock selloff.
Final Thoughts: Palo Alto had a great quarter and is a growth stock, but it is not the best value play among tech stocks.
Notable Earnings Today: Deere & Co. (NYSE: DE), Foot Locker (NYSE: FL), Booz Allen Hamilton Holding (NYSEL BAH), RLX Technology (NYSE: RLX), Anterix (Nasdaq: ATEX).
Notable IPOs Today: SaverOne 2014 Ltd. (Nasdaq: SVRE).
Notable Equity Crowdfunding Campaigns Ending Today: Clear Protocol (Silicon Prairie), NowRX (Seed Invest), Aptera Motors (Issuance).
Notable Economic Events Today: N/A.
Ross Stores' Tough Landscape
Shares of Ross Stores (Nasdaq: ROST) dropped 25.03% in after-hours trading on Thursday after the retail store posted negative financial earnings.
Financials: Ross Stores reported earnings of 97 cents per share and revenue of $4.3 billion; both were below estimates.
Decline: Comparable store sales declined 7% when compared to the pre-pandemic days of 2019 and operating margin was down year-over-year as well.
Start and Finish: The company said that after "a stronger-than-planned start early in the period, sales underperformed over the balance of the quarter."
Blame: Ross Stores also said that the end of government stimulus, lower customer demand, and the war in Europe "exacerbated inflationary pressures on the consumer not seen in 40 years."
Numbers: Shares of Ross Stores are down 16% in the past six months, but are up 2% in the past five days.
Final Thoughts: It’s not the best economic environment for retail stores, including Rose Stores.
Utility Startups in Equity Crowdfunding
Looking for companies in the utility space to invest in? Check out these two private utility startups raising money through equity crowdfunding.
Be Solar: YouSolar, a solar and battery system, has already raised over $500,000 and is currently accepting investors on StartEngine.
No Limit: Sky Limit Energy, a solar energy company, is trying to raise millions through an independent equity crowdfunding campaign.
Final Thoughts: Equity crowdfunding can be rewarding for investors, but investing in startups is also risky.
Trends to Watch
Holding Out Hope: Bitcoin price predictions abound as traders focus on the next BTC halving cycle (Cointelegraph)
Silence of the Lamps: U.S. at High Risk of Power Emergencies This Summer, Say Regulators (Gizmodo)
Home Not So Sweet Home: US home sales fell again in April as prices hit another record high (CNN)
Falling Short: Applied Materials Profit Climbs but Supply-Chain Issues Persist (The Wall Street Journal)
Standing in the Way: Philip Morris, Swedish Match deal could be derailed by retail investors (Seeking Alpha)
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