What Happened:
Shares of network application delivery and security specialist F5 (NASDAQ:FFIV) fell 6.85% in the after-market session after the company reported underwhelming earnings for the last quarter, which narrowly beat analysts' revenue estimates. However, revenue guidance for the next quarter was below consensus estimates. Following the results, Barclays analyst downgraded the stock's rating from Overweight (Buy) to Equal-Weight (Hold).
What is the market telling us:
F5 Networks's shares are not very volatile than the market average and over the last year have had only 5 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
F5 Networks is down 12% since the beginning of the year, and at $127.50 per share it is trading 37.7% below its 52-week high of $204.57 from April 2022. Investors who bought $1,000 worth of F5 Networks's shares 5 years ago would now be looking at an investment worth $812.31.
Is now the time to buy F5 Networks? Access our full analysis of the earnings results here, it's free.