From the Motley Fool Money show, Chris Hill and Jason Moser take a quick look at Palo Alto Networks (PANW -1.71%), which has traded down about 25% since reporting its fiscal second quarter results at the end of February.

A full transcript follows the video.

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This video was recorded on March 3, 2017. 

Chriss Hill: Palo Alto Networks is in the business of cyber security. Second quarter revenue came in at a record $422 million, and Wall Street was so impressed, shares of Palo Alto Networks fell nearly 25% this week. What happened, Jason? 

Jason Moser: I think this is one of the more difficult markets in which to invest. I think it's really tough to not only identify the winners in cyber security, but then to understand why they can do it sustainably. For me, there are a lot of reasons why I look at this and take a pass. I think with Palo Alto, the fact of the matter is that sales are slowing down considerably. We have a stock that has been trading at, really some high valuations there. And even after the sell-off here, it's still at 46 times non-GAAP numbers for 2017. You have to lob up those growth rates. If you don't lob them up, the market is going to punish you, and that's what's happened here today.

It's based on more competition in the space, it's based on the fact that the customers are deliberating a little bit more about what they want to spend and with whom. You combine that all together and the sell-off makes sense. That's not to say that Palo Alto is not good at what they do. But again, investors need to identify why they're so good at it, and is it something they can do on a sustainable basis? It sounds like, today, there's some competition out there that's giving them a run for their money.