Why we're not discouraged by CrowdStrike and Broadcom selling. Context is everything

Key points

• There is no denying that waking up Thursday morning to the post-earnings declines in CrowdStrike and Broadcom is painful.
• It was also painful to see a similar sell-off in Palo Alto Networks in the prior session.
• In fact, Palo Alto stock is now riding a three-session losing streak.
• Ultimately, all three companies reported solid quarterly results and forward guidance, and Wall Street analysts largely increased their price targets.
• However, all three ran hot into their prints, and "solid" was not nearly good enough to meet the lofty expectations of an investor base that is looking for the next Snowflake, Hewlett Packard Enterprise or Dell, all of which exploded to the upside after their guides crushed estimates.