The Daily Breakdown: Palo Alto Networks Rallies on Earnings Beat

Shares of Palo Alto Networks are in focus this morning after beating earnings and offering stable steerage. The Day by day Breakdown digs in.

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What’s Taking place?

Crypto is holding its cool. That’s as Bitcoin, Ether and different large alts proceed to slowly drift decrease over the previous few days. After charging greater final week — with BTC hitting new report highs — Stellar, Ripple, Solana and others coughed up their features and started to retreat. 

Pullbacks are a lifestyle with regards to actively traded belongings — and that’s notably true with belongings that commerce 24/7. 

For now, crypto leaders proceed to digest the huge rally we noticed in July and are holding above key assist areas and breakout ranges. So long as this commentary stays true, it’s wholesome worth motion. 

That mentioned, some smaller cryptos are on the transfer this morning, together with: API3, Pudgy Penguins, Morpho, Biconomy, and Berachain.

On the earnings entrance, Dwelling Depot kicks off earnings for retailers this morning. Goal, Lowe’s, and TJX Corporations will report tomorrow morning.

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The Setup — Palo Alto Networks

Final evening, Palo Alto Networks reported its fiscal This autumn outcomes, incomes 95 cents a share on income of $2.54 billion. Each metrics topped expectations, however buyers had been extra targeted on steerage — administration expects fiscal 2026 income of $10.47 billion to $10.52 billion, above consensus estimates of $10.42 billion — and the agency’s just lately introduced $25 billion acquisition of CyberArk. 

They should have preferred what they heard, with shares rising greater than 5% in pre-market buying and selling. 

For the previous 12 months, PANW inventory has been rangebound between ~$170 and ~$205. Bulls are hoping that this week’s earnings report is sufficient to reassure buyers and assist drive shares again up towards the high quality. Finally, they’d prefer to see a breakout. Nevertheless, if shares fade decrease within the coming days or even weeks, potential assist within the $165 to $170 zone can be on shut watch. 

Choices

Traders who imagine shares will transfer greater over time might think about collaborating with calls or name spreads. If speculating on a long-term rise, buyers would possibly think about using satisfactory time till expiration. 

For buyers who would moderately speculate on the inventory decline or want to hedge an extended place, they might use places or put spreads. 

To study extra about choices, think about visiting the eToro Academy.

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What Wall Avenue’s Watching

HD

Shares of Dwelling Depot are in focus this morning after the corporate barely missed on earnings and income expectations. Nevertheless, administration reiterated its full-year outlook, giving buyers some consolation that enterprise would rebound within the second half of the 12 months. Try the chart for HD inventory. 

INTC

Intel shares fell practically 4% following stories that the Trump administration might convert $10.9 billion in CHIPS Act grants into a ten% fairness stake. Nevertheless, the inventory rebounded after SoftBank introduced a $2 billion funding, buying roughly 2% of Intel’s shares. Keep in mind, INTC jumped greater than 20% final week. Dig into the basics for Intel. 

DAY

Shares of Dayforce led the S&P 500 on Monday with a acquire of practically 26% on stories that personal fairness agency Thoma Bravo is in talks to accumulate the corporate. Regardless of the big one-day acquire, DAY inventory solely hit its highest stage since mid-February, because the inventory has struggled to regain its post-Covid momentum.

Disclaimer:

Please word that resulting from market volatility, a number of the costs might have already been reached and eventualities performed out.