PANW - Can Artificial Intelligence (AI) Save This Beaten-Down Tech Stock?
2024-05-31 19:00:00 ET
Artificial intelligence (AI) was supposed to be a big deal for cybersecurity companies, but a closer look at the quarterly results that Palo Alto Networks (NASDAQ: PANW) has delivered so far this year indicates the company has failed to make the most of this technology.
Palo Alto stock was punished severely in February this year following the release of its fiscal 2024 second-quarter results as the company's billings growth showed signs of weakness. That wasn't surprising; billings point toward the health of a company's future revenue pipeline, with the metric referring to sales contracts that will eventually be booked as revenue.
Palo Alto's billings grew at a slower pace than its revenue during that quarter, prompting the cybersecurity specialist to offer incentives and freebies to customers to help drive sales. So, it wasn't surprising to see investors hitting the panic button once again following the release of Palo Alto's fiscal Q3 earnings report (for the three months ended April 30, 2024) on May 20.
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Can Artificial Intelligence (AI) Save This Beaten-Down Tech Stock?