Palo Alto Networks Stock Slides on Dismal Guidance

Palo Alto Networks Inc (NASDAQ:PANW) shares are down 5.9% to trade at $153.86 at last glance, as disappointing current-quarter and annual profit forecasts overshadow its strong fiscal second-quarter results. No fewer than 11 analysts slashed their price targets in response, including Scotiabank to $180 from $228.

PANW is on track for its fifth loss in the last six sessions, as well as its worst single-day percentage loss since February 2024. Shares are trading at their lowest level since April, adding to their roughly 27% year-over-year deficit. 

Options traders have been much bullish than usual. This is per the equity's 50-day call/put volume ratio of 3.16 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 96% of readings from the past year. 

Drilling down to today's options activity, 57,000 calls and 44,000 puts have been exchanged so far, which is six times the intraday average volume. The most active contract by far is the February 144 put, with new positions being sold to open there.