Internet Security Stocks Diving After Qualys Misses Revenue Target

REDWOOD CITY (KCBS) - When your stock is hot, you better keep feeding good news to investors.

Online security provider Qualys is finding that out the hard way after missing revenue estimates in the first quarter, which rose 24% to $37.5 million, while also coming up just shy in its guidance for the current quarter and full year.

The Redwood City firm's stock is taking a big dive, mainly on the forecast, in which Qualys blames a lower growth rate for its Vulnerability Management business.

Qualys shares have doubled over the past year with business ramping up their security to combat growing data breaches.

Qualys shares were down almost 30-percent on the news, taking down other Internet security firms in the process, like FireEye, Palo Alto Networks, and Fortinet.