Why Palo Alto Networks Stock Crashed Today

• Palo Alto Networks (PANW) beat Q4 revenue but missed on GAAP earnings. • Stock dropped 9% after earnings despite strong non-GAAP results. • High valuation prompts analyst to label PANW a sell. Scotiabank raised its PANW price target pre-earnings. Palo Alto posted 34% revenue growth to $3.4B and $1.02 non-GAAP EPS, beating estimates, yet reported a $0.35 GAAP loss. Full-year FCF reached $4.1B (up 17%). Despite the beats, PANW shares fell 9% to $323.45 on a 72× price-to-FCF multiple, leading the author to call the stock a sell.