Why Palo Alto Networks (PANW) Declined on Wednesday?

We recently published a list of These 10 Stocks Were Wednesday’s Worst Performers. In this article, we are going to take a look at where Palo Alto Networks, Inc. (NASDAQ:PANW) stands among Wednesday’s worst-performing stocks.

The stock market declined on Wednesday, with all major indices finishing in the red, driven by losses in technology stocks.

The Nasdaq dropped 0.51%, while the S&P 500 and Dow Jones fell 0.47% and 0.31%, respectively.

Ten companies, mostly from the technology sector, led the downturn.  In this article, we will highlight the biggest decliners and examine the factors driving their performance.

To identify Wednesday’s biggest losers, we focused on stocks with a market capitalization of at least $2 billion and a daily trading volume of over $5 million.

A cutting-edge computer lab full of IT experts monitoring the security of multiple systems.

Palo Alto Networks, Inc. (NASDAQ:PANW)

Cybersecurity firm Palo Alto Networks, Inc. (NASDAQ:PANW) saw its share prices decrease by 3.9 percent on Wednesday to close at $185.42 apiece as investors sold off positions following news that the US Department of Homeland Security announced plans to cut funds in the agency.

According to former South Dakota Governor Kristi Noem, who will lead the department under the Trump administration, the Cybersecurity and Infrastructure Security Agency (CISA) has gotten far off its mission.

“They are using their resources in ways that were never intended. The misinformation and disinformation that they have stuck their toe into and meddled with should be refocused back onto what their job is,” Noem said.

Palo Alto Networks, Inc. (NASDAQ:PANW), a cybersecurity company with deep connections to the government and public sector contracts, stands to be negatively hurt by any potential funding cuts, as such reductions would likely result in smaller, less profitable contracts with government agencies.

Overall, PANW ranks 10th on our list of Wednesday’s worst-performing stocks. While we acknowledge the potential of PANW as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PANW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.