Palo Alto Networks Shares Drop After Disappointing Billings Forecast

The cybersecurity firm's shift to a consolidated platform faces investor skepticism amid cautious corporate spending

Palo Alto Networks' shares fell over 8% following a tepid fourth-quarter billings forecast.
The company's new platformization strategy has led to deferred payments, impacting short-term revenue.
Analysts remain optimistic about long-term growth due to new AI products and a deal with IBM.
Revenue for the third quarter grew 15% to $1.98 billion, slightly above expectations.
Despite the downturn, the firm expects growth to pick up in the second half of 2024.