Cybersecurity Software Stocks Index Dropped 8% Last Week, PANW Cuts Sales Forecast

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Cybersecurity stocks were hit hard last week after Palo Alto Networks Inc. (PANWlowered its full-year sales guidance, raising concerns about industrywide headwinds. The cybersecurity category had been flying high up until then (the  munKNEE Cybersecurity Software Stocks Index was up 106% in 2023 and was up 18% so far in 2024) based on the positive effect that the anticipated 14% increase in spending on cyber security in 2024 was expected to have on the category.

Below is how each of the 10 constituents in the Index performed last week, in ascending order, and YTD, plus news, commentary, and/or analysis where applicable.

  1. Palo Alto Networks (PANW): down 23.0% last week; down 4.3% YTD
    • provides subscription services covering the areas of threat prevention, malware, and persistent threat, URL filtering, laptop and mobile device protection as well as DNS, Internet of Things, SaaS, API, and SaaS security inline, and threat intelligence, and data loss prevention.
    • Latest News, Commentary, and/or Analysis:
      • Chief Executive Officer Nikesh Arora noted on a call with analysts that clients were showing signs of “spending fatigue” even as online threats increased and now expects fiscal 2024 revenue and total billings to decline, albeit marginally.
  2. SentinelOne (S): down 7.8% last week; down 0.8% YTD
    • is a global leader in AI security using its Singularity™ Platform to detect, prevent, and respond to cyber attacks enabling organizations to secure endpoints, cloud workloads, containers, identities, and mobile and network-connected devices with speed, accuracy, and simplicity.
    • Latest News, Commentary, and/or Analysis:
  3. Zscaler (ZS): down 6.9% last week; up 6.2% YTD
  4. Tenable Holdings (TENB): down 6.8% last week; up 3.3% YTD
  5. CrowdStrike Holdings (CRWD): down 5.4% last week; up 22.0% YTD
  6. CyberArk Software (CYBR): down 1.7% last week; up 16.8% YTD
  7. Check Point Software (CHKP): down 1.5% last week; up 4.9% YTD
  8. Fortinet (FTNT): down 1.2% last week; up 15.6% YTD
  9. Varonis Systems (VRNS); down 1.0% last week; up 8.2% YTD
    • provides security products that manage network events in real-time to detect any breaches or threats and expanded its support for Microsoft's Office 365 platform in November 2023 by adding new features to protect against malicious emails.
    • Latest News, Commentary, and/or Analysis: Varonis Systems (VRNS) Price Target Increased by 21.73% to 53.95
  10. Qualys (QLYS): down 0.7% last week; down 16.7% YTD


The munKNEE Cybersecurity Software Stocks Index was down 7.8% last week and is now only up 5.5% YTD.

Cybersecurity ETF

Investing in a basket of cyber security stocks is a quick and easy way to get investment portfolio exposure to this critical segment of the tech sector. The Global X Cybersecurity ETF (BUG), for example, consists of 31 stocks, has an expense ratio of 0.51% and was down 4.2% last week and is now only up 1.1% YTD.

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Disclosure: None

This article has been composed with the exclusive application of the human intelligence (HI) of the author. No artificial intelligence (AI) technology has been deployed. ...

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