Shares of Palo Alto Networks are in focus this morning after beating earnings and providing solid guidance. The Daily Breakdown digs in.
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What’s Happening?
Crypto is keeping its cool. That’s as Bitcoin, Ether and other big alts continue to slowly drift lower over the past few days. After charging higher last week — with BTC hitting new record highs — Stellar, Ripple, Solana and others coughed up their gains and began to retreat.
Pullbacks are a way of life when it comes to actively traded assets — and that’s particularly true with assets that trade 24/7.
For now, crypto leaders continue to digest the massive rally we saw in July and are holding above key support areas and breakout levels. As long as this observation remains true, it’s healthy price action.
That said, some smaller cryptos are on the move this morning, including: API3, Pudgy Penguins, Morpho, Biconomy, and Berachain.
On the earnings front, Home Depot kicks off earnings for retailers this morning. Target, Lowe’s, and TJX Companies will report tomorrow morning.
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The Setup — Palo Alto Networks
Last night, Palo Alto Networks reported its fiscal Q4 results, earning 95 cents a share on revenue of $2.54 billion. Both metrics topped expectations, but investors were more focused on guidance — management expects fiscal 2026 revenue of $10.47 billion to $10.52 billion, above consensus estimates of $10.42 billion — and the firm’s recently announced $25 billion acquisition of CyberArk.
They must have liked what they heard, with shares rising more than 5% in pre-market trading.
For the past year, PANW stock has been rangebound between ~$170 and ~$205. Bulls are hoping that this week’s earnings report is enough to reassure investors and help drive shares back up toward the top of the range. Eventually, they’d like to see a breakout. However, if shares fade lower in the coming days or weeks, potential support in the $165 to $170 zone will be on close watch.
Options
Investors who believe shares will move higher over time may consider participating with calls or call spreads. If speculating on a long-term rise, investors might consider using adequate time until expiration.
For investors who would rather speculate on the stock decline or wish to hedge a long position, they could use puts or put spreads.
To learn more about options, consider visiting the eToro Academy.
If you want to upgrade your investing knowledge this summer, make sure to join our eToro Academy Learn & Earn Challenge, where you can take courses, pass quizzes, and earn up to $20 in rewards. Terms and conditions apply.
What Wall Street’s Watching
HD
Shares of Home Depot are in focus this morning after the company slightly missed on earnings and revenue expectations. However, management reiterated its full-year outlook, giving investors some comfort that business would rebound in the second half of the year. Check out the chart for HD stock.
INTC
Intel shares fell nearly 4% following reports that the Trump administration may convert $10.9 billion in CHIPS Act grants into a 10% equity stake. However, the stock rebounded after SoftBank announced a $2 billion investment, acquiring roughly 2% of Intel’s shares. Remember, INTC jumped more than 20% last week. Dig into the fundamentals for Intel.
DAY
Shares of Dayforce led the S&P 500 on Monday with a gain of nearly 26% on reports that private equity firm Thoma Bravo is in talks to acquire the company. Despite the large one-day gain, DAY stock only hit its highest level since mid-February, as the stock has struggled to regain its post-Covid momentum.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.
