Shares of Palo Alto Networks (PANW) - Get Palo Alto Networks, Inc. Report are down more than 7% Wednesday despite the network security company reported in-line earnings per share and revenue that came in ahead of analysts' expectations.
The company reported a "monster quarter," TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Stop Trading" segment. Sales for the quarter grew more than 40% against the same quarter last year, while the company also announced a $500 million share repurchase program.
So why is the stock down so much? Cramer blamed the guidance and wondered whether management is simply being conservative or if there's more competition entering the field.
Cyber-security stocks have been under pressur,e and part of the reason is because investors don't hear about the high-profile hackings anymore, such as what afflicted Target (TGT) - Get Target Corporation Report or Home Depot (HD) - Get Home Depot, Inc. (HD) Report , Cramer said.
If investors feel the sector is coming back, Palo Alto is a stock to buy. "That was a very good quarter and it's a very well-run company," Cramer concluded.
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.