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Yahoo Finance Live anchors discuss the surge in Palo Alto Networks stock.
BRAD SMITH: Staying on the earnings tip here, we got to talk about shares of cybersecurity company Palo Alto Networks, seeing a boost following its latest earnings beat despite challenges in the supply chain. The CEO noting a broadening demand for cybersecurity enabling the company to grow and invest from a position of strength. Now, if you're noticing a theme across any of these earnings today, all of them talking about heavy demand but increasingly how they're going to actually meet that demand with supply remains in question.
You're taking a look at some of the estimates versus the actuals for Palo Alto. And particularly here for Palo Alto Network, as you think more broadly across some of those names that were kind of pandemic fan favorites if you will, Palo Alto Networks was looked at heavily by investors who were looking for more of a network, a cloud infrastructure play if you will. And in cybersecurity that's where Palo Alto Networks has certainly carved out their own space within this industry.
JULIE HYMAN: Yeah, and they have been hit of course, like a lot of the other pandemic or just broadly tech plays. However, they're what? At the lowest since call it mid-2021. So they haven't necessarily fallen as much as some others.
And the numbers, if you look at them, they were pretty strong across the board. Billings growth was 40%, which I was just looking at one analyst note, was the highest during the tenure of the current CEO. The company raised its forecast for the full year. Is now looking at up to $5.5 billion worth of revenue and up to $7.46 in earnings per share. So raising on those various fronts here.
And the company also targeting GAAP profitability. GAAP for you folks who don't remember, G-A-A-P, we're not talking about the place where you buy jeans or where you don't buy jeans as the case may be. No, we're talking about Generally Accepted Accounting Principles, profitable in the near future. So that's what the company is now targeting. So that kind of rhetoric coming from Palo Alto also appears to be boosting the stock here this morning.
BRAD SMITH: Yeah.