US Stock Market Move | Q3 guidance lower than expected, Palo Alto Networks (PANW.US) drops over 9%. CEO supports long-term value of network security.

Although the company's second-quarter performance exceeded Wall Street expectations, Palo Alto Networks' (PANW.US) stock price fell more than 9% on Wednesday to $148.5 due to the lower-than-expected guidance for the third quarter. Recently, as generative AI tools rapidly penetrate enterprise processes and website development, the software sector as a whole is under pressure, and investors are beginning to worry about whether the new generation of AI will have a long-term impact on existing business models. Since the beginning of the year, software sector-related ETFs have fallen by more than 20%, and Palo Alto Networks' stock price has also experienced a significant pullback. Palo Alto Networks CEO Nikesh Arora has explicitly stated that artificial intelligence will not replace the cybersecurity industry in the short term. In the latest earnings call, he said that the market's perception of AI as a cybersecurity threat logic perplexes him. Instead, customers are realizing that they need a more unified and consistent security architecture to leverage AI for faster and more efficient security responses. Furthermore, the company is ramping up its AI strategy. It has not only introduced a new generation of "intelligent agents" tools but also strengthened its capabilities through acquisitions, including the completion of a major acquisition of identity security company CyberArk and the integration of the AI observability platform Chronosphere. Arora stated that these investments are in response to structural market changes, as the company is entering the next phase of AI applications.