Core Viewpoint - Palo Alto Networks has demonstrated strong financial performance despite a recent downgrade by HSBC, with analysts from Wedbush maintaining an optimistic outlook for the company [2][6]. Financial Performance - The company reported revenue of $2.47 billion, slightly exceeding Wall Street's estimate of $2.46 billion [3][6]. - Gross margin was reported at 76.9%, and operating margin at 30.2%, both metrics surpassing forecasts [3][6]. - Earnings per share were $0.93, above the guidance and analysts' estimate of $0.89 [4][6]. Market Reaction - Following the downgrade by HSBC, Palo Alto Networks' shares dropped 7.3% to approximately $185 [4][6]. - The stock experienced a decrease of 7.42%, translating to a drop of $14.83, with a trading range between $183.20 and $199.69 [5]. - Despite the decline, Wedbush views this as a potential buying opportunity due to the company's strong financials [4][6]. Analyst Ratings - HSBC downgraded Palo Alto Networks from a "Hold" to a "Reduce" rating, with the stock priced at $185.07 at the time of the downgrade [2][6]. - Wedbush maintains an 'Outperform' rating with a price target of $225, reflecting confidence in the company's future performance [2][6]. Market Capitalization and Trading Volume - Palo Alto Networks' market capitalization is approximately $123.8 billion, with a trading volume of 15.9 million shares [5]. - Over the past year, the stock has seen a high of $223.61 and a low of $144.15 [5].