Why CrowdStrike, Palo Alto Networks, and Fortinet Stocks Slumped on Thursday Morning
Unexpectedly good news had unexpectedly bad results for cybersecurity stocks this morning, as the December inflation report came in at 6.5% -- the slowest year-over-year increase since October 2021. Ordinarily you'd expect this to be good news for stocks, as it may suggest to the Federal Reserve that it need not raise interest rates quite so high, or quite so often as it has been, to combat runaway inflation.
Regardless, stock markets opened lower on Thursday, and cybersecurity stocks were among the bigger losers. CrowdStrike Holdings (NASDAQ: CRWD) slumped 3.2% through 10 a.m. ET, Palo Alto Networks (NASDAQ: PANW) slipped 2.2%, and Fortinet (NASDAQ: FTNT) dropped 2.6%.
That growth stocks like CrowdStrike, Palo Alto, and Fortinet would sink on news that implies less growth-slowing, interest rate-hiking activity by the Fed is a bit counterintuitive. That being said, there was some moderately bad news for the cybersecurity sector this morning that may explain the declines.
Source Fool.com
