JIANG_LIM
08-09
$Fortinet(FTNT)$  

Fortinet just took a heavy hit, dropping over 3% in a single day. This is after a brutal slide from its 52-week high of $114.82. The stock now sits around $72.89, flirting with its 52-week low of $67.98.

What happened? The cybersecurity giant delivered results that could not live up to the lofty expectations baked into its price. Forward guidance came in soft and investors are questioning whether Fortinet can sustain its growth pace in a competitive, fast-evolving market.

At a P/E near 29 and a P/B over 27, the valuation is still not “cheap” by any stretch. This means the market was pricing in near-flawless execution and the latest earnings call just cracked that perfection narrative.

Yes, Fortinet remains a strong player with high ROE and solid margins, but high valuations can turn from friend to foe when growth slows. If sentiment continues to shift from “hyper-growth” to “show-me results”, we might not have seen the bottom yet.

Sometimes, the most dangerous time to hold is not when a company is bad, but when the story changes.


Fortinet Stock Plunges on Disappointing Revenue Guidance
Fortinet's stock dropped nearly 13% in late trading after the cybersecurity company reported a miss on revenue in its fiscal 2025 and projected quarterly revenue below estimates. Despite beating earnings expectations, the soft outlook and growth concerns led to a significant decline in share price. The company's forward guidance for the second quarter fell short of analyst estimates, reflecting challenges in the cybersecurity industry and slower demand for its services.
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Comments

  • MaxGain
    08-09
    MaxGain
    Great write up! Fortinet is actually company (in my humble opinion) who just happened to catch the wave along with the other far larger and more successful competitors like Palo Alto Networks and CrowdStrike, who not only thrive but evolved along with the new cybersecurity AI narratives, while Fortinet struggles simply either by acquiring lousy penny companies just for show and delivery zero innovation nor any value. To make matter worst, you have a duo of founding brothers, CEO & CTO who are now not only incompetent, behind the curve but with an ego bigger than the universe running the whole shit show to the ground, while the board will soon see the horror unfold and a group of brown nosed executives continues to tell the DUO CLOWNS how wonderful a job they are doing and that sailing off the cliff is fine 🤣. All said, my sympathies to investors who have been caught in this shit show and those thinking that this is a buying opportunity to steer clear of this falling NUCLEAR ☢️ 💣!
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