NEW YORK, March 07, 2024 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired Palo Alto Networks (“Palo Alto” or the “Company”) (NASDAQ:PANW) securities during the period of August 18, 2023 through February 20, 2024 inclusive (“the Class Period”). Investors have until April 26, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
[Click here to learn more about the class action]
On February 20, 2024, Palo Alto announced its financial results for Q2 2024 and lowered its full-year revenue and guidance for Q3. Specifically, Palo Alto projected earnings per share to range from $1.24 to $1.26 and revenue guidance of $1.95 billion to $1.98 billion, falling below analysts’ estimates. In an earnings call that same day, the Company explained that “our guidance is a consequence of us driving a shift in our strategy in wanting to accelerate both our platformization and consolidation and activating our AI leadership.” Palo Alto also revealed that federal government deals for several large projects did not close and resulted in “a significant shortfall in our U.S. federal government business” that is expected to continue into the third and fourth quarters of 2024. On this news, the price of Palo Alto shares declined by $104.12 per share, or approximately 28.4%, from $366.09 per share on February 20, 2024 to close at $261.97 on February 21, 2024.
The lawsuit alleges that (i) The Company’s consolidation and platformization initiatives were not driving increased market share to a significant degree; (ii) the Company would need to ramp up platformization and free product offerings to entice customers to adopt more of their platforms; (iii) the Company’s high growth in billings was not sustainable; (iv) new AI offerings were not facilitating greater platformization and consolidation; and (v) Palo Alto lacked a reasonable basis for their positive statements about customer demand, billings, and platformization, as well as related financial results, growth, and prospects.
If you purchased or otherwise acquired Palo Alto securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
