Gen Digital (GEN) shares fell after the company reported slightly lower third-quarter results. The company also announced lackluster full-year earnings forecasts. Yahoo Finance Live takes a closer look at this movement and the performance of cybersecurity stocks.
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Editor's note: This article was written by luke carberry morgan.
video transcript
– Gen Digital's stock price fell after the company missed expectations in the third quarter and lowered its fiscal 2024 revenue outlook. And Julie, I understand that this is a stock that you're going to tell me about.
– Well, because some of you may have noticed this stock, which is one of the worst-performing stocks, or one of the worst-performing stocks, in the S&P 500 today. Trending on Yahoo Finance's trending ticker page, “What the heck is Gen Digital?” Now, let's talk about what Gen Digital is. The cybersecurity company formerly known as NortonLifeLock.
Remember, this was like Broadcom buying the enterprise security division from Symantec and putting it together and calling it NortonLifeLock. This is also the brand name for the cybersecurity software the consumer is getting. The brand is Norton. In other words, that's the kind of company we are. Then, in September 2022, it merged with a company called Avast to become Gen Digital. So this is a cybersecurity company. But to your point, investors are disappointed with this number, and many analysts are pointing to his lower RPU, lower average revenue per user as the problem here.
– yes. That's what I got from some of the analyst comments I was looking at. So let's take a quick look at YFi Interactive in action. This is a max chart. This goes back to his late 80's to his early 90's. But this is, look, 20 years of chops. I will post the 20 year chart. And you can see we're right in the middle of that range. But I saw that my sinusoidal heartbeat looked very similar to the heartbeat on the electrocardiogram, Julie.
– Well, I think it's because the company has changed…
– There could be some semantics there. It's always interesting to see how these mergers impact stock price history.
– Yes, definitely so.
