Why Are Cybersecurity Stocks Down Today

Shares of several cybersecurity companies, including CrowdStrike Holdings Inc (NASDAQ:CRWD), Palo Alto Networks Inc (NASDAQ:PANW), and Zscaler Inc (NASDAQ:ZS), are trading lower Thursday after Fortinet Inc (NASDAQ:FTNT) issued guidance that was in-line with estimates and slightly lowered its full-year services revenue outlook.

• FTNT Revenue: $1.03 billion was in-line with estimates
• FTNT EPS: 24 cents beat the estimate of 22 cents

Fortinet expects third-quarter revenue to be between $1.105 billion and $1.135 billion versus the estimate of $1.12 billion. The company expects third-quarter adjusted earnings to be between 26 cents and 28 cents per share versus the estimate of 27 cents per share. 

Full-year revenue is expected to be in the range of $4.35 billion to $4.4 billion versus the estimate of $4.38 billion. Full-year services revenue is expected to be between $2.62 billion and $2.67 billion. Full-year adjusted earnings are expected to be between $1.01 and $1.06 per share.

UBS lowered its price target on Fortinet from $68 to $65 following the company's results. Barclays also cut its price target from $80 to $77.

Datadog Inc (NASDAQ:DDOG) also issued cautious guidance that was in line with estimates. The company is cloud-native and focuses on analyzing machine data. Datadog's outlook may be adding to the pressure on cybersecurity names Thursday. 

See Also: Datadog Stock Slides Post Q2 Results

CRWD, PANW, ZS Price Action: CrowdStrike was down 5.65% at $184.29, Palo Alto was down 6.49% at $494.77 and Zscaler was down 4.14% at $158.45 at press time, according to Benzinga Pro.

Photo: Pete Linforth from Pixabay.