Latest news with #PANW
Yahoo
3 days ago
- Business
- Yahoo
Palo Alto Networks, Inc. (PANW) Believes AI Robots Going Rogue Is Quite Difficult
We recently published a list of . In this article, we are going to take a look at where Palo Alto Networks, Inc. (NASDAQ:PANW) stands against other stocks that Jim Cramer discusses. Palo Alto Networks, Inc. (NASDAQ:PANW) is a cybersecurity company. The firm's shares have gained 8.9% year-to-date as it has managed to weather the storm that has hit the broader technology industry. Palo Alto Networks, Inc. (NASDAQ:PANW)'s sector, cybersecurity, has been a top Cramer pick in 2025. The CNBC host has praised these companies as he believes that not only do they stand to experience greater demand as firms seek to secure their AI systems, but also due to their non-existent exposure to trade frictions between the US and China. Here are his recent thoughts about Palo Alto Networks, Inc. (NASDAQ:PANW): 'Nitesh Arora came on the show from Palo Alto last week and said the Agentic, the ability to be able to get into Agentic, uh very difficult. That is something that George Kurtz thinks too. We don't wanna have our robots go rogue. Which is they wouldn't really go rogue, someone would make them go rogue.' Palo Alto Networks, Inc. (NASDAQ:PANW) recently reported its earnings. Cramer discussed the results in detail and commented: 'Okay so Palo Alto did not, you know they beat it, but they did not raise. Now there's a history of them doing that. I do think that this is an overreaction. I do think that, remember I said April was a tough month in this country. But this is the opportunity, now this is another one, this one usually goes down between seven and ten percent. Then it stabilizes tomorrow and by next week it starts going up. That's the pattern. And you know look I can just tell you that's a correct analysis or I can tell you that what happens every time. TJX, same thing. These companies do not put themselves in harm's way. They do not raise big because they know that that's going to lead to sadness. A cutting-edge computer lab full of IT experts monitoring the security of multiple systems. 'Yeah look I just think that it's business as usual there. It's AI. They have this, they are all in on AI and you have to be. And the threats are as horrible as ever. But at the same time, if you do not raise, the next quarter, especially when it's the end of your fiscal year, then your stock gets hit. That's the game. That's just the game. We know that.' Overall, PANW ranks 10th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of PANW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Palo Alto Networks Hits $5B in NGS ARR: What's Fueling the Surge?
Palo Alto Networks PANW surpassed a key milestone during the third quarter of fiscal 2025, wherein the annual recurring revenues (ARR) for its next-generation security (NGS) solutions hit the $5 billion mark. In the third quarter, NGS ARR reached $5.09 billion, representing year-over-year growth of 34%.Palo Alto Networks had 130 customers with more than $5 million in NGS ARR at the end of the third quarter, up 41% year over year. Also, the customer count with more than $10 million in NGS ARR grew 63% to 44. In the third quarter, PANW reported that AI-related ARR now stands at approximately $400 million, 2.5 times higher than the year-ago quarter. The robust growth in NGS ARR can be attributed to its flagship XSIAM platform, which is gaining traction across enterprise customers. During the third quarter, bookings for XSIAM, an artificial intelligence (AI)-powered NGS platform, approached the nearly $1 billion mark on a trailing 12-month basis. The platform now has approximately 270 customers with an average ARR per customer of more than $1 million. XSIAM ARR grew more than 200% year over year in the third quarter, all within 30 months after XSIAM was made generally available to customers. With management targeting $15 billion in ARR by fiscal 2030, AI may be more than a tailwind, it could be the engine of PANW's next phase of growth. The company forecasts that its NGS ARR will contribute approximately 60-70% of the fiscal 2023 total targeted ARR. Competitors like CrowdStrike CRWD and SentinelOne S are also gaining ground through platform expansion and AI innovation. CrowdStrike ended its first quarter of fiscal 2026 with $4.44 billion in ARR, reflecting 22% year-over-year growth. The robust increase was fueled by the growing adoption of CrowdStrike's Falcon Flex subscription a small competitor, SentinelOne's ARR is also growing rapidly with reaching $948 million at the end of the first quarter of fiscal 2026. This represents a year-over-year rise of 24% fueled by growing adoption of SentinelOne's AI-first Singularity platform and Purple AI. Shares of Palo Alto Networks have gained 6.7% year to date compared with the industry's growth of 19.4%. Image Source: Zacks Investment Research From a valuation standpoint, PANW trades at a forward price-to-sales ratio of 12.6, below the Zacks Security industry's 14.47. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Palo Alto Networks' fiscal 2025 and 2026 earnings implies a year-over-year increase of approximately 15% and 11%, respectively. The estimates for fiscal 2025 have been revised upward in the past 30 days, while the same for fiscal 2026 has remained unchanged. Image Source: Zacks Investment Research PANW stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SentinelOne, Inc. (S) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report CrowdStrike (CRWD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Business Insider
5 days ago
- Business
- Business Insider
Palo Alto Networks CTO sells $19.3M in common stock
In a regulatory filing, Palo Alto Networks (PANW) disclosed that its CTO Nir Zuk sold 100K shares of common stock on June 2nd in a total transaction size of $19.3M. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Yahoo
31-05-2025
- Business
- Yahoo
Palo Alto Networks, Inc. (PANW): A Bear Case Theory
We came across a bearish thesis on Palo Alto Networks, Inc. (PANW) on Disruptive Analytics' Substack. In this article, we will summarize the bears' thesis on PANW. Palo Alto Networks, Inc. (PANW)'s share was trading at $186.75 as of 23rd May. PANW's trailing and forward P/E were 107.33 and 50.76 respectively according to Yahoo Finance. Palo Alto Networks (PANW) reported fiscal Q3 2025 results that modestly beat expectations, with revenue rising 15% YoY and strong contributions from next-generation security products. However, the market reacted negatively, as investors were underwhelmed by the company's forward guidance. PANW projected just 14–15% revenue growth for the next quarter and announced a 19% increase in remaining performance obligations (RPO), both seen as signs of slowing momentum. These figures sparked concerns about whether the company can maintain the high growth rates that have justified its valuation. The broader cybersecurity sector remains a long-term growth story, but PANW's recent slowdown is evident. Two years ago, the company was growing revenue at 25% YoY, while current growth has slipped to the mid-teens. Although investor expectations have adjusted somewhat, PANW still trades less than 10% below its all-time high, indicating that optimism remains elevated. The valuation premium appears unjustified given the current growth trajectory. At over $200 per share, the stock implies sustained revenue growth near 20% YoY, which PANW is not delivering. This disconnects between valuation and performance highlights the risks of relying solely on sector strength. While PANW operates in a promising industry, its financials no longer support such a high multiple. The numbers suggest a fair value closer to $155, where expectations would better align with realistic growth. Without a reacceleration in fundamentals, PANW looks overvalued at current levels despite its strong positioning within cybersecurity, and investors may need to reset assumptions accordingly. Previously, we have covered Palo Alto Networks, Inc. (PANW) in March 2025 wherein we summarized a bearish thesis by the same author. In the article, he cited concerns over its high valuation despite solid fundamentals and 15% annual growth. While PANW benefited from AI-driven security innovations and a shift to a unified platform model, a DCF analysis estimated its fair value at $155, below its then-current price of $182.32. The article acknowledged PANW's strengths but suggested other AI stocks offered better return potential at more attractive valuations. Since our last coverage, the stock has been mostly flat as of 26th May. Palo Alto Networks, Inc. (PANW) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 83 hedge fund portfolios held PANW at the end of the fourth quarter which was 64 in the previous quarter. While we acknowledge the risk and potential of PANW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PANW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-05-2025
- Business
- Yahoo
Palo Alto Networks, Inc. (PANW): A Bear Case Theory
We came across a bearish thesis on Palo Alto Networks, Inc. (PANW) on Disruptive Analytics' Substack. In this article, we will summarize the bears' thesis on PANW. Palo Alto Networks, Inc. (PANW)'s share was trading at $186.75 as of 23rd May. PANW's trailing and forward P/E were 107.33 and 50.76 respectively according to Yahoo Finance. Palo Alto Networks (PANW) reported fiscal Q3 2025 results that modestly beat expectations, with revenue rising 15% YoY and strong contributions from next-generation security products. However, the market reacted negatively, as investors were underwhelmed by the company's forward guidance. PANW projected just 14–15% revenue growth for the next quarter and announced a 19% increase in remaining performance obligations (RPO), both seen as signs of slowing momentum. These figures sparked concerns about whether the company can maintain the high growth rates that have justified its valuation. The broader cybersecurity sector remains a long-term growth story, but PANW's recent slowdown is evident. Two years ago, the company was growing revenue at 25% YoY, while current growth has slipped to the mid-teens. Although investor expectations have adjusted somewhat, PANW still trades less than 10% below its all-time high, indicating that optimism remains elevated. The valuation premium appears unjustified given the current growth trajectory. At over $200 per share, the stock implies sustained revenue growth near 20% YoY, which PANW is not delivering. This disconnects between valuation and performance highlights the risks of relying solely on sector strength. While PANW operates in a promising industry, its financials no longer support such a high multiple. The numbers suggest a fair value closer to $155, where expectations would better align with realistic growth. Without a reacceleration in fundamentals, PANW looks overvalued at current levels despite its strong positioning within cybersecurity, and investors may need to reset assumptions accordingly. Previously, we have covered Palo Alto Networks, Inc. (PANW) in March 2025 wherein we summarized a bearish thesis by the same author. In the article, he cited concerns over its high valuation despite solid fundamentals and 15% annual growth. While PANW benefited from AI-driven security innovations and a shift to a unified platform model, a DCF analysis estimated its fair value at $155, below its then-current price of $182.32. The article acknowledged PANW's strengths but suggested other AI stocks offered better return potential at more attractive valuations. Since our last coverage, the stock has been mostly flat as of 26th May. Palo Alto Networks, Inc. (PANW) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 83 hedge fund portfolios held PANW at the end of the fourth quarter which was 64 in the previous quarter. While we acknowledge the risk and potential of PANW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PANW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
