Fortinet's Stock Crashed -- Is This Leading Cybersecurity Provider Done For?
's (NASDAQ: FTNT) magnificent 2023 rally that sent shares to new all-time highs is over -- at least for now. Following second-quarter 2023 financial updates, the market was mighty displeased with management's guidance.
Whenever a stock fetches a high premium, investors expect management to under-promise and over-deliver, not the other way around. Is it time to bail on Fortinet?
Fortinet reported Q2 2023 revenue of $1.29 billion, up 26% from last year. Within that total, product sales (like firewalls, a security device to manage traffic into and out of a physical location) increased 18% to $473 million, and services (of which 55% are security software subscriptions, or SaaS) grew 30% to $820 million. Earnings per share were $0.33, up 57%, and free cash flow (FCF) was up 54% to $438 million.
Source Fool.com
Fortinet Inc. Stock
The stock is one of the favorites of our community with 35 Buy predictions and 3 Sell predictions.
As a result the target price of 70 € shows a positive potential of 25.85% compared to the current price of 55.62 € for Fortinet Inc..
