NEW YORK (TheStreet) -- Shares of Palo Alto Networks (PANW) - Get Report are falling 13% to $128.91 on heavy trading volume late Friday morning after the cyber security firm posted 2016 third quarter results and gave a weak forecast.
The quarter was "disappointing" as the company discussed seasonality, macro woes and a slowdown in orders, TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning.
"You don't want to hear that when you have a super high growth stock," Cramer added in the above video.
Product revenue growth decelerated to 33% from between 46% and 47% in previous quarters.
Cramer wondered whether the "green field" of cyber security has now become too crowded with competitors.
"They talked about taking some contracts from other companies," Cramer added. "No, I want to hear it's so green field you don't have to worry about taking contracts from other companies."
Cramer also mentioned that during the company's conference call analysts were "trying to figure out why things were slowing."
"That matters tremendously," he said.
Palo Alto Networks topped earnings by 2% compared to its typical beat of between 5% and 7%, and the beat was back-end loaded, Deutsche Bank analysts said when downgrading the stock this morning.
About 6.35 million of the company's shares were traded so far today vs. its average volume of 1.61 million shares per day.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and generally disappointing historical performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: PANW