analyst Dan Ives. He joins us now from Wed Bush with what to expect this evening and what's been taking place in in that group. It's good to see you. >> Great to see you.>> So, why has cyber been swept up in everything that's been going on. >> Yeah, I look I think part of it is just this software, right. I mean, the view is that can cyber be disintermediated by some of these tools, whether it's anthropic or some of the, you know, really the startup tools that are coming from an AI perspective.to my point is ...

the same reasons that it uses non-GAAP operating margin.Next-Generation Security ARR. Palo Alto Networks defines Next-Generation Security ARR as the annualized allocated revenue of all active contracts as of the final day of the reporting period related to all product, subscription and support offerings, excluding revenue from hardware products, and legacy attached subscriptions, support offerings and professional services. The company considers Next-Generation Security ARR to be a useful operating metric f ...

Cyber stocks have endured a rough 2026 alongside an AI-driven sell-off in software stocks. That may create a buying opportunity, according to Wedbush analyst Dan Ives. "AI will be a major tailwind to the cyber security sector over the coming years as protection of use cases, data, and end points expand markedly," Ives wrote in a research note published Tuesday. While the growing use of AI has raised questions about business models in sectors ranging from enterprise software to real estate, Ives argued ...

CrowdStrike Holdings Inc (NASDAQ:CRWD) shares are taking a dip today. Truist Securities cut its price target on the company and reiterated its Buy rating. Here’s what you should know.CrowdStrike Holdings stock is among today’s weakest performers. Why are CRWD shares down?What The Note ShowedTruist analyst Junaid Siddiqui trimmed its price target on CrowdStrike to $550 from $600 but left its revenue and operating‑income forecasts unchanged. The only tweak came in free‑cash‑flow expectations, with the firm nu ...

Core Insights - Palantir Technologies has experienced significant growth, with Q4 revenue increasing 70% year-over-year (YOY) to $1.4 billion, driven primarily by its U.S. business which accounted for 77% of total revenue and grew 93% YOY [2] - The company has diversified its revenue streams, with commercial revenue rising 82% YOY to $677 million, while government revenue increased 60% YOY to $730 million, indicating a successful expansion beyond government contracts [2] - Palantir's total contract value (TCV) reached a record $4.3 billion in the quarter, with remaining deal value for the year increasing 105% YOY to $11.2 billion, showcasing strong demand for its services [5] Financial Performance - The company's "Rule of 40" score, a metric combining growth and profitability, reached 127%, reflecting a balance between rapid expansion and strong profitability [1] - For the full year, revenue grew 56% to $4.475 billion, with adjusted free cash flow of $2.27 billion and a cash position of $7.2 billion at the end of the quarter [5] - Analysts project earnings to increase by 76% in 2026 and another 39% in 2027, indicating strong future growth potential [7] Strategic Initiatives - Palantir is applying lessons from commercial supply chains to enhance national security, as evidenced by a $448 million contract from the U.S. Navy to modernize shipbuilding supply chains [1] - The company is focusing on organic growth through direct customer connections rather than acquisitions, which is expected to drive continued momentum in the coming years [6] - The average target price for Palantir shares is $200.43, suggesting a potential upside of 51% from current levels, with a Street-high estimate of $260 indicating a possible 95% upside [7]

Market Overview - The Dow, S&P 500, and Nasdaq experienced gains in Tuesday afternoon trading after fluctuating earlier in the session [1] - Enterprise software companies faced declines due to concerns about artificial intelligence negatively impacting their businesses, with Salesforce dropping over 3%, CrowdStrike down 4.5%, and Palo Alto Networks falling more than 2% [1] Company Highlights - Apple shares rose more than 3.5%, driven by anticipation of a new budget iPhone showcase next month, positioning Apple as a significant beneficiary of AI disruption [1] - BlackRock received attention from ValueAct, which invested in the company, citing its Aladdin platform as a key asset for automating investment decisions and enhancing its reputation beyond just being an ETF operator [1] - BlackRock's technology segment, which includes Aladdin and Preqin revenues, generated nearly $2 billion in 2025, accounting for about 8% of total revenues [1] Earnings Reports and Future Outlook - Palo Alto Networks is set to report earnings, with expectations for the CEO to address AI-related market share concerns and discuss the acquisition of agentic endpoint startup Rio [1] - Dover's CEO indicated an acceleration in orders heading into 2026, particularly in the Fueling Solutions business, while expressing caution about the vehicle aftermarket business due to its exposure to the struggling European market [1] - Upcoming economic data includes housing starts and industrial production, along with minutes from the latest Federal Reserve meeting [1]

Market Overview - The U.S. equity markets are experiencing a mixed performance with a divergence between growth-oriented technology shares and defensive sectors as traders return from the Presidents Day holiday [1] - The Dow Jones Industrial Average (DJI) is up approximately 28 points, or 0.1%, near the 49,500 level, while the Nasdaq Composite (IXIC) is down about 0.2% at 22,546 [2] - The S&P 500 (SPX) remains virtually unchanged, oscillating around its 100-day moving average of 6,836 [2] Sector Performance - The Technology Select Sector SPDR (XLK) is under pressure as investors de-risk from high-multiple software names, while defensive and cyclical sectors are providing support [3] - The Utilities Select Sector SPDR (XLU) has gained 1.5%, indicating strong performance in defensive sectors, while Financials are also outperforming due to stabilizing comments from Federal Reserve officials [3] Technology Sector Developments - Concerns about "AI disruption" are prevalent, with fears of a "SaaS-pocalypse" affecting software giants; Salesforce (CRM) fell 2.6%, Intuit (INTU) declined 5%, and Oracle (ORCL) dropped 4% [4] - Nvidia (NVDA) remains a focal point in the semiconductor space, trading up 1.3% ahead of its critical earnings report next week, while Advanced Micro Devices (AMD) and Micron (MU) are down 2% and 2.6%, respectively [5] Consumer Sector Insights - General Mills (GIS) stock plunged 6.9% after cutting its full-year profit forecast due to "uneasy" customers and a slowdown in household spending [6] - Medtronic (MDT) slipped 2.5% despite beating quarterly estimates, as management warned of potential headwinds from upcoming tariff implementations [6] Mergers and Acquisitions - Danaher (DHR) shares dropped 6% following the announcement of a nearly $10 billion acquisition of Masimo (MASI), whose shares surged 35% on the news [7] - Warner Bros. Discovery (WBD) rose 2.9% amid reports of seeking a "best and final" buyout offer from Paramount (PARA) [7] Economic Data and Upcoming Events - January retail sales were flat, indicating a cautious outlook from major retailers, while the Empire State Manufacturing Index for February reached +7.1, slightly missing expectations but remaining in expansionary territory [8] - Upcoming earnings reports from Palo Alto Networks (PANW) and Devon Energy (DVN) are anticipated to provide insights into cybersecurity spending and energy demand [9] - The Federal Reserve will release minutes from its recent policy meeting, which may offer clues regarding future rate cuts following a moderation in the Consumer Price Index (CPI) to 2.4% [9]

Core Insights - Analysts from Wedbush see significant potential gains for cybersecurity stocks, particularly Palo Alto Networks, CrowdStrike, and ZScaler, as demand for cybersecurity services is expected to rise due to increasing AI-related risks [1][1] Group 1: Company Analysis - CrowdStrike is regarded as the "gold standard of cybersecurity" despite a 13% decline in its stock year-to-date, with a price target of $600 indicating nearly 50% upside from its recent level around $408 [1][1] - ZScaler is identified as a "premier name" in the cybersecurity space, with a strong product pipeline and AI strategy, and analysts project its stock could double to $350 in the next 12 months [1][1] - Palo Alto Networks is set to report earnings soon and has improved its value proposition through recent acquisitions, with a price target of $225 suggesting a 37% increase from its recent stock level [1][1] Group 2: Market Context - The cybersecurity sector is viewed as undervalued by investors, with analysts suggesting that the industry's growth opportunities are being underestimated amid broader market losses in software stocks [1][1] - The upcoming earnings reports for ZScaler and CrowdStrike are anticipated to provide further insights into the companies' performances and market positions [1][1]

Core Viewpoint - Analysts expect Palo Alto Networks to report Q2 revenue of $2.58 billion, an increase from $2.26 billion, and earnings per share of 76 cents, down from 81 cents in the same quarter last year [1][2] Financial Performance - The company has beaten analyst estimates for revenue for nine consecutive quarters [1] - Analysts anticipate earnings per share to decline, marking a potential shift in performance metrics [1] - Company guidance indicates expected revenue between $2.57 billion and $2.59 billion and earnings per share between 93 to 95 cents [2] Analyst Ratings - Analysts have been lowering their price targets ahead of the quarterly results, with several firms maintaining their ratings but adjusting targets downward [3][8] - Mizuho lowered its price target from $220 to $205 while maintaining an Outperform rating [8] - Other firms like BTIG, DA Davidson, JPMorgan, and Barclays also adjusted their price targets downward while maintaining their ratings [8] Strategic Moves - Palo Alto Networks announced plans to acquire Koi, an agentic endpoint security company, to address new challenges in cybersecurity [4][5] - The acquisition is part of a broader strategy to enhance the company's offerings in the AI era, as traditional security measures may not suffice against modern threats [4][7] - The company has recently completed other acquisitions, including Chronosphere and CyberArk, which may not fully impact the upcoming quarterly results [5][6] Market Sentiment - Shares of Palo Alto Networks have decreased by 22.6% over the last year, with current stock price at $161.24, down 3.4% on the day [10] - Investors are looking for strong guidance and performance in the upcoming earnings report to restore optimism [9]

分组1 - Palo Alto Networks is set to report second quarter earnings, with analysts expecting adjusted earnings per share of 93 cents on revenue of $2.58 billion [1] - The company's shares have declined nearly 10% in 2026, currently down 3.5% at 161.14 [1] - Concerns about AI disruption are affecting investor sentiment, with a focus on long-term business viability rather than short-term earnings [3][4] 分组2 - Analysts are questioning whether Palo Alto's acquisitions are defensive measures due to slowing growth or if they are part of a more aggressive strategy [6][7] - The stock is trading at 40 times earnings while growing revenue at mid-teens percentage, raising valuation concerns [6] - The overall tech sector is experiencing a sell-off, impacting cybersecurity firms like Palo Alto Networks [5][19] 分组3 - The earnings season has shown that even companies with good quarterly results are facing skepticism from investors regarding future growth [3] - The hyperscaler market is seeing increased capital expenditure forecasts, with expectations rising from 25-30% to closer to 60% [9] - Companies like Nvidia and Broadcom are positioned to benefit from increased spending in the hyperscaler market [10][11]