The biggest and best cyber security stocks haven't been rewarded for great earnings reports this quarter.
A few weeks ago, Palo Alto Networks $PANW reported a double beat, but it was beat down.
On Tuesday evening, CrowdStrike $CRWD reported a double beat, but it closed 6.33% lower on Wednesday.
This is a significant change in character from the recent past when these stocks were some of the hottest in the market.
PANW and CRWD recently rallied after 10 and 5 consecutive earnings reports, respectively.
This shows how much the market used to like what they had to say in their earnings reports.
The tables have turned for these stocks. The market is now consistently punishing them for reporting earnings.
We have a lot to unpack today, so let's talk about what else happened 👇
Here are the latest earnings reactions from the S&P 500:
*click the image to enlarge it
As you can see, Brown-Forman $BF.B had the best reaction score on Wednesday, and Crowdstrike $CRWD had the worst.
The stock with the largest market capitalization was CRWD, and the smallest was Campbell's $CPB.
Now, let's dig into the data and talk about the most significant earnings reactions 👇
BF.B had its 2nd best earnings reaction ever:
Brown-Forman was rewarded for reporting mixed results. It rallied 10.1%, with a reaction score of 4.73.
This report was all about the forward guidance.
The company reaffirmed its outlook for organic net sales and operating income in the 2% to 4% range for 2025. This is a significant change from recent years when they've experienced declining sales.
The stock resolved a short-term accumulation pattern, and it looks poised to test the VWAP, which is anchored to last summer's peak.
If BF.B can reclaim 38, the path of least resistance will shift from sideways to higher for the foreseeable future.
CRWD had its worst earnings reaction since Q4 2022:
CrowdStrike reported a double beat, but the market hated it. It closed 6.3% lower, with a reaction score of -4.26.
The company's key performance indicator, net new ARR, declined 1% year-over-year. This signals a slowing in growth, which the market wasn't pleased with.
The stock has failed to hold a breakout above a shelf of former highs from last year and is back in the penalty box.
We expect CRWD to trade lower to sideways for the foreseeable future.
