CrowdStrike, Zscaler, SentinelOne Shares Are Sliding Tuesday: What's Going On?

Several cybersecurity names including CrowdStrike Holdings Inc CRWD, Zscaler Inc ZS and SentinelOne Inc S are trading lower in Tuesday’s after-hours session in sympathy with Palo Alto Networks Inc PANW, which issued weak guidance after the bell.

What Happened: Palo Alto beat analyst estimates on both the top and bottom line in the fourth quarter, but the company issued soft guidance, which appears to be weighing on shares.

Palo Alto guided for fiscal third-quarter revenue of $1.95 billion to $1.98 billion versus estimates of $2.04 billion. The cybersecurity company also said it expects third-quarter adjusted earnings to be between $1.24 and $1.26 per share versus estimates of $1.29 per share. 

Palo Alto guided for full-year 2024 revenue between $7.95 billion and $8 billion versus estimates of $8.19 billion. The company said it sees full-year earnings between $5.45 and $5.55 per share versus estimates of $5.51 per share.

Palo Alto shares were down nearly 20% at last check and weakness has spread to the rest of the cybersecurity sector. The stocks getting hit the hardest after hours appear to be the names that are yet to report earnings. Fortinet is not moving as much as other cybersecurity stocks, likely because the company already reported positive quarterly results in early February.

Zscaler is due to report earnings on Feb. 29, CrowdStrike will report on March 5 and SentinelOne will report on March 13.

Check This Out: OpenAI Patches Critical ChatGPT Security Holes, Averting Potential User Account Hijacks

CRWD, ZS, S Price Action: At publication time, CrowdStrike was down after-hours 7.63% at $299, Zscaler was down 7.65% at $231.20 and SentinelOne was down 5.66% at $27.40, per Benzinga Pro.

Photo: B_A from Pixabay.