Fortinet Shares Rally on Legal Scrutiny 91st in $970M Volume Amid Earnings Volatility

Fortinet (NASDAQ: FTNT) closed August 20, 2025, with a 1.95% gain, marking a trading volume of $970 million, ranking 91st among equities on the day. The stock's performance followed a series of legal and financial developments that impacted investor sentiment.

On August 6, 2025, Fortinet disclosed its Q2 2025 earnings, revealing progress of 40%-50% in the 2026 firewall upgrade cycle. However, the company issued weaker-than-expected third-quarter revenue guidance of $1.67 billion to $1.73 billion. This triggered a 22% drop in share price on August 7, 2025, closing at $75.30. The Law Offices of Frank R. Cruz announced an investigation into potential federal securities law violations related to these disclosures, prompting calls for affected investors to seek legal counsel.

Strategies based on high-volume trading have shown mixed outcomes. A 1-day holding period for the top 500 stocks by trading volume from 2022 to present yielded a 0.98% average daily return, with a cumulative 31.52% over 365 days. This highlights short-term momentum opportunities but underscores risks from market volatility and timing challenges.