Shares of Palo Alto, the most valued U.S. cybersecurity stock, shed 6.79% on nearly twice the average volume, and Zscaler, the fifth most valued, slumped 6.42%.
Cybersecurity stocks Palo Alto Networks, Inc. (PANW) and Zscaler (ZS) attracted heavy retail chatter on Thursday after cybersecurity stocks sold off during the session.
The First Trust NASDAQ Cybersecurity ETF (CIBR) fell 3.42% on Thursday despite the Nasdaq Composite ending at a new peak.
The cybersecurity industry came under heavy selling pressure, with the declines accompanied by heavy volumes. Piper Sandler analysts downgraded CrowdStrike Holdings (CRWD) stock late Wednesday, citing an unattractive valuation that limited the scope of any potential upside. The stock fell over 5% in the session.
Shares of Palo Alto, the most valued U.S. cybersecurity stock, shed 6.79% on nearly twice the average volume, and Zscaler, the fifth most valued, slumped 6.42%. Incidentally, Zscaler stock received a price target boost from BTIG to $365 from $329 on Thursday, the Fly reported.
Analysts at the firm attributed the positivity to their channel checks that revealed strong July quarter trends for the company.
On Stocktwits, Palo Alto stock drew brisk retail chatter, with the 24-hour message volume leading up to late Thursday up over 1,000%.
Sentiment toward the stock was ‘extremely bullish’ (73/100) by late early Friday, reversing from the ‘bearish’ mood seen a day ago. The message volume also rose to ‘extremely high’ levels.
Bullish watchers of the stock were left wondering why the stock nose-dived without any solid reason, but expressed confidence it would come back up.
The Zscaler stock saw a 1,100% spike in 24-hour message volume by late Thursday. Sentiment toward the stock improved to ‘bullish’ (66/100) from ‘neutral’ a day ago, and the message volume improved to a ‘high’ level.
Some retail watchers doubled down on their ‘bullish’ stances on Zscaler despite the stock weakness, with a few indicating they bought the dip.
Palo Alto stock is up over 5.5% year-to-date, while Zscaler has gained over 64%.
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