Palo Alto Networks shares lead the S&P 500’s decliners on Friday. Here’s why.

Palo Alto Networks shares trailed the S&P 500 on Friday after a downgrade by HSBC. They have over 5% off in the afternoon sale.

Analyst Stephen Bersey looked at the company’s “platforming” strategy, whereby it offered some product offerings for free at first to spur greater paid adoption of its broader suite of services.

“We are not convinced that, even if successful, the additional sale of new modules would be significant enough to return revenue growth to the 20-plus percent levels seen in the recent past,” Bersey wrote, while downgrading his rating to cut from hold. .