Cybersecurity takes the swoon.

Motley Full Money starts now.

Welcome to Motley Full Money. I'm DeDroll Laird here with Motley Full analyst David Meyer.

David, how are you doing today?

I'm doing very well. How are you?

I'm doing well, but we're going to talk about a company that maybe isn't having the best Wednesday we've ever

No, I don't think it is and that's cyber security firm Palo Alto Network now they had a solid quarter, revenue up around 19%. They met

expectations, they're growing their business, their biggest customers, there's a

lot to like there, but the market did not like this usual foe of late for

guidance so tell us a little bit about what's happening here. So you're exactly

right Q1 performance came in pretty much as expected,

but the guidance for fiscal Q2 as well as fiscal year

2024, the growth for those two came in much lower than expected.

So the company had been and had been continued to achieve this with just under 20% revenue growth. But now the expectations are for mid-teens and look that's a big difference, especially when your stock is trading at

premium valuation metrics before the earnings report.

It was trading it just under 13 times forward sales.

So, you know, when you don't meet expectations and you're trading for a premium,

that's unfortunately your stock is going to sell off sharply and that is exactly what is happening today.

Well, you know, management was really careful on the call to try to explain why this is

happening.

They're saying, you know, were they?

Were they? I feel like they were talking a lot about like the demands not going away

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