Gen Digital (GEN) shares tumble after reporting a slight miss on third-quarter earnings. It also issued lackluster full-year guidance. Yahoo Finance Live takes a closer look at the move and the cybersecurity stock's performance.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Luke Carberry Mogan.
Video Transcript
- Gen Digital shares dropping after missing third quarter estimates and slashing its fiscal 2024 revenue guidance. And Julie, this is a stock that I understand you're going to educate me on.
- I am, OK, because some people might have looked at this stock, which was the worst performer or one of the worst performers in the S&P 500 today. It was trending on our Yahoo Finance trending ticker page, and said, what the heck is Gen Digital? Well, I'm going to tell you what Gen Digital is. It is a cybersecurity company that was formerly known as NortonLifeLock.
Remember, that was sort of a combination of the Broadcom bought the enterprise Security Division from Symantec, named it NortonLifeLock, which is also the brand name that if you're a consumer, and you're getting a cybersecurity software, sometimes, it has the brand Norton. So that's what company. Then it merged with the company called Avast in September of 2022 and became Gen Digital. So it's a cybersecurity company here. But to your point, one, the disappointed investors with its numbers here and a lot of analysts pointing to lower RPU here, lower average Revenue Per User, as the issue.
- Yes. That was what I was taking away from some of the analyst commentary that I was looking at. And let's take a look at the YFi Interactive real quickly. This is a max chart. This goes back to it looks like late 80s, early '90s. But this is just, look at this, 20 years of chop. Let me put a 20-year chart. And you can see we are right in the middle of the range there. But I've seen my sinusoidal heartbeat looks very similar to that on an EKG, Julie.
- Well, I guess that's because the company changed too in terms of like--
- Semantic might be in there. It's always interesting how these mergers affect the stock history.
- Yes, most definitely.
