Palo Alto Networks sinks and cybersecurity ETFs go down too

TLDR:

Shares of Palo Alto Networks (PANW) have plummeted by 26.3% after the company announced lower revenue and billings guidance due to softness in the cyber security market. As a result, cyber security ETFs like HACK, BUG, CIBR, WCBR, and PSWD, which have heavy allocations towards PANW, are also down.

Article Summary:

The article discusses the significant drop in Palo Alto Networks’ stock price, leading to a corresponding decrease in cyber security ETFs that have heavy allocations towards PANW. The stock plummeted by 26.3% in early trading after the company lowered its full-year revenue and billings guidance, citing softness in the cyber security market. This decline also impacted ETFs such as HACK, BUG, CIBR, WCBR, and PSWD, which have substantial weightings towards PANW. For example, HACK has a 6.82% weighting towards PANW, while BUG, CIBR, WCBR, and PSWD also have significant allocations to the company. As a result, these ETFs experienced declines ranging from 4.88% to 7.5% in response to PANW’s performance. Overall, the article highlights the interconnectedness between individual stocks like PANW and ETFs in the cyber security sector, emphasizing the impact of one company’s performance on the broader industry.