2023-08-21 15:23:27 ET
Shares of multiple cybersecurity and artificial intelligence (AI)-focused tech companies including Nvidia (NASDAQ: NVDA) , Zscaler (NASDAQ: ZS) , and CrowdStrike (NASDAQ: CRWD) each climbed more than 5% early Monday, according to data provided by S&P Global Market Intelligence , both amid positive analyst commentary and as the market breathed a sigh of relief following strong results from cybersecurity leader Palo Alto Networks (NASDAQ: PANW) .
Palo Alto Networks stock rallied more than 15% this morning as investors celebrated its strong fiscal fourth-quarter results. Management credited the outperformance -- which included 26% revenue growth and an 18% increase in billings -- to "strong execution" as well as customers' positive reception for the company's new AI-based security automation platform, XSIAM, in helping it "deliver superior security outcomes." Palo Alto Networks also provided better-than-expected forward earnings guidance, indicating signs of greater operating leverage as it scales.
In any case, analysts were understandably reassured by Palo Alto's report after a brief panic given its unusual timing, as the press release went out on Friday after the market closed. CEO Nikesh Arora noted during the earnings conference call that the timing of the release was due to the need to disclose financial information ahead of a sales conference that took place over the weekend.
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Why These 3 AI and Cybersecurity Stocks Rallied Today