After a strong rally this year, many fast-growing stocks have experienced a sudden decline. Only this week names like Shopify (NYSE :), Twilio (NYSE 🙂 and Paycom (NYSE 🙂 have already fallen double-digit, on no news. Given the robust growth prospects of the industry, the massacre does not seem justified.
After selling out the sector, these three names remain a bargain in the cloud software:
Palo Alto Networks: Cyber Security Software Leader
Palo Alto Networks (NYSE 🙂 – generally regarded as the cream of the crop in the cyber security software industry – serves more than 60,000 organizations in 150 countries, including 85 of the Fortune 100. Shares paid Tuesday $ 206.84 , giving it a market cap of $ 20.0 billion. Although the share has fallen by 8% since 1 August, it is still 10% year-to-date (YTD).
From a technical point of view, PANW must break above its 200-day moving average (DMA) close to the $ 215 limit to reclaim its bullish up trend.
The Santa Clara, California-based cyber security company reported $ 1.47 per share on September 4, making earnings per share expectations higher than $ 1.42 and 15% higher than the $ 1.28 earnings. per share in the same period last year. Turnover increased by 22% on an annual basis (YoY) to $ 805.8 million, exceeding the $ 803 million forecasts. The profit margin was fueled by a strong increase in the total number of invoices, an important measure of revenue growth, which increased by 22% to $ 1.1 billion. CEO Nikesh Arora, a former top manager at Alphabet's Google and SoftBank Group, who took over as Chief Executive in June 2018, said:
"We had a strong fourth quarter, for the first time more than a billion dollars in invoices within the quarter, and achieving about 180% annual growth in our newer range of Prisma and Cortex."
Although the annual budget for the whole year 2020 came on the soft side, it predicted better-than-expected billing and revenue growth until 2022. Taking all this into account, Palo Alto is in an excellent position to be a leading name. are in the cyber security space in the coming years.
Trade Desk: rapidly expanding digital advertising purchasing specialist
Trade Desk (NASDAQ 🙂 shares have fallen by 38% since the highest point ever reached $ 289.51 on August 8. It closed at $ 210.06 last night, giving it a market capitalization of $ 9.45 billion. Despite the withdrawal, the share has made a whopping 81% profit so far this year.
From a technical point of view, equities are approaching important support near their 200DMA, which has acted as a level to which they have returned in the past.
The online advertising market based in Ventura, California easily outperformed estimates on both the top and bottom lines when it revealed its revenue for its fiscal second quarter on August 8. Earnings per share of $ 0.68 and 58% higher than $ 0.60 in the same period a year earlier. Sales increased by 42% yoy to $ 159.9 million, above the predictions of $ 155.1 million.
The strong quarterly results were stimulated by the growing demand for its self-service software platform, where customers can purchase and manage data-driven digital advertising campaigns.
Because it continues to benefit from a fast-growing wave of digital ad purchases, the software-as-a-service (SaaS) company said it expects third-quarter revenue of $ 163 million, representing a YoY revenue growth of 37%.
Okta: Fast-Growth Identity Management Firm
Shares of Okta (NASDAQ :), one of the fastest growing names in cloud-based identity management software, have fallen by 22% since August 22. The stock ended yesterday at a three-month low of $ 107.22, giving it a value of $ 12.5 billion. Despite the recent sale, the stock of Okta has still risen 68% since the beginning of the year.
From a technical perspective, the short-term share above its main 200DMA must remain close to the $ 96.99 level to show that sales pressure has been exhausted.
The San Francisco-based cyber security company achieved better-than-expected results on August 28, thanks to high demand from large companies for its cloud-based identity and access management software. Customers with annual contracts with a value of more than $ 100,000 jumped 46% yoy to 1,222 in the three-month period ending July 31.
Sales increased by 49% from the same quarter a year earlier to $ 140.48 million, easily surpassing forecasts for sales of $ 131.18 million. It lost $ 0.05 per share, better than expected for a loss of $ 0.10 per share and narrowing losses of $ 0.15 per share in the period a year ago.
The explosive growth of Okta is by no means over: the cloud identity management provider predicts revenue in the third quarter from $ 143 million to $ 144 million, representing a revenue growth of 35% to 36%. It also increased its annual revenue expectations to $ 563 million, representing an annual growth of 41%.