While broader markets are in the red after a fourth successive rate hike from the Federal Reserve, major cyber security names are seeing a meltdown of their own after major disappointments from Rapid 7 (NASDAQ:RPD) and Fortinet (NASDAQ:FTNT).
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Rapid7 is down nearly 25% today after the company slashed its ARR outlook. It now expects ARR for 2022 to range between $711 million and $717 million as compared to earlier expectations of ARR between $740 million and $750 million.
Fortinet is now down about 11.7% after its guidance was a big letdown for investors.
While third-quarter numbers showed an uptick of 32.6% in revenue ($1.15 billion) and EPS at $0.33 came in ahead of expectations by $0.06, the Q4 revenue guidance between $1.66 billion and $1.72 billion came in below the Street’s expectations.
In response, Raymond James’ Adam Tindle has cut the price target on the stock to $60 from the earlier $70 while maintaining a Buy rating.
Palo Alto Networks (NASDAQ:PANW) which is slated to report numbers on November 17 is already down ~6% today. Analysts expect the company to post an EPS of $0.69 for Q1.
Zscaler (NASDAQ:ZS) too is dropping today as markets digest the latest earnings which indicate macroeconomic challenges are catching up with cyber security stocks.
CloudFlare (NYSE:NET), on the other hand, is holding the fort with a 2.5% gain today.
The company is expected to post third-quarter numbers after the market close today. Analysts expect the company to post an EPS of $0.01.
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