M&A activity from big firms buying smaller firms for share or for access to the sector.
So why with regular, favorable news on the sector continue to result in over the top selling of these companies?
Days like today make people mad. Who do you figure? 9% down on LNKD? Really?
The stocks that reported in cyber security were good. Fear is ruling this trade.
Amazing how high WS takes a stock before they take them the other way after a mind change
Stock is acting very bad in this rally. Should be up at least 15%. You are lucky with this gain. Guidance for the next Quarter was very weak. Lowered revenue by 7 million and EPS to .08-.09 Analyst were looking for .13 cents. 52 week low in two weeks. Good luck
Sentiment: Strong Sell
I think the sector is catching the shorts and Ws off guard. The groups been killed and shorted to death. I suppose this his the catalyst to restore a move up again to regain a good chunk of losses over the last 6 months.
is lame if your read the transcript. They bought back a lot of shares in 2015 toward the lows and I bet they are buying back more right now at these lower levels. Look at where theu made those purchases for 2015.
Buyback is through 2017 and they have plenty cash for it. Thst is not a problem. They met/beat full year guidance. Q3 and q4 had most stocks in all indexes in correction/bear market mode. Given what happened to global markets, considering how almost no analysts had predicted the collapse in everything ewe just went through, I say the did much better than you think. Lowering guidance is what most companies do to beat them. The analysts who make up those numbers are guessing. I suspect they beat and I also suspect most of WS knows thst.
of two reasons:
1 uncertainty of the macro environment
2 sales organization changes
I think these two reasons are very reasonable. and considering FTNT has been down for almost 50% from 52-week high. FTNT is one of the best-breeds in the security sector. We shall be able to see it gradually goes back to 33 to 36 range by early next month.
The market down only ~15% from 52-week high and ftnt already down 50% from 52-week high. so I guess lots of bad news should already be priced in and reflected in the stock price. People with long position should be relieved for not so bad Q1 guidance plus the re-purchase plan.
The network security is still one of the hottest sectors in IT and still growing at impressive speed compared to other sectors. I think ftnt will be close to 30 by market close tomorrow.
Those chances are slim. Investors want safety with their investments. Here you have a company lowering the top and bottom line for Q1. They pay zero dividends. They are losing money on a GAAP basis. Growth on top of that is slowing to 23% estimate next year. This is a classic risk off stock. Listen to the CC, they bring up worlds in turmoil more than once. You just have too ask yourself, why another 200 million buyback? The answer is very simple if you think about it. Sell into any strength and preserve you capital. It may "pop" but it will not last long. 52 week low very soon. Good luck
Maybe tomorrow. Peptides and Ftnt both up in AH on earnings, as well as Msft. Perhaps tech and cyber holds tonight hpgains and advance tomorrow.
For Q1 to .08-.09 Verse estimate of .13 EPS. Growth is slowing and operating margins going down. If they didn't announce a 200 million buyback it would be down in AH. Give it time and a new 52 week low will be here soon. Full year EPS of .67-.69 in line. The PE is way overvalued for todays market.
Yeah, no way for a growing company with $1B+ sales and over $1B in cash and no debt in a still hot sector to make it on their own.
Sentiment: Strong Buy