Is Buying Palo Alto Networks Too Risky Now?

Palo Alto Networks (PANW) is one of the fastest growing cyber security companies in the industry. The sector itself is growing at a rapid speed and Palo Alto Networks' dominant position in the market makes it a worthy pick.

Palo Alto Networks’ security platform protects huge number of enterprise, government, and service provider from interferences. The thing that differentiates Palo Alto Networks from its competitors is the company’s security platform that combines next generation firewall, progressive endpoint protection, and Threat Intelligence Cloud which its offers mostly to medium and large enterprises, and government entities.

Palo Alto Networks’ platform also comprises of content-based threat prevention technology which does not depend on instable attributes such as URL or Filename, in addition to experiential analysis, which most opponents also propose.
Moreover, Palo Alto Networks’ content based threat prevention technology is grounded on a single-pass architecture that escalates throughput and decreases latency in an efficient manner.

Cyber security is a time sensitive industry, which means it keeps changing as new and bigger threats are being evolved. Therefore, it totally depends on the company and how early it is developing a solution to defend the next big threat.

Palo Alto Networks is not only focused on the high-end of the industry, but is also focused on a rising niche of the industry, network security. Network security carries on benefiting from more and more companies implementing Big Data by collecting and harnessing their customer data. This suggests that with the growth of data and bandwidth, the demand for cyber security solutions will also surge. And this will offer a great opportunity to the company in the imminent quarters.

On the other hand, the growth of enterprise networks and cloud computing has surged demand for network and cloud security. Not only has Palo Alto Networks endured to capture market share in the aggressively competitive cyber security industry, but it is also developing at a rapid pace, which is actually amazing keeping in mind the company’s comparatively huge size.

The company has taken a lead due to its pure play stand in network industry, permitting it to pay attention on next-generation firewall and related product offerings as its first priority.


I recommended buying Palo Alto Networks several times in the past and also changed my stance right before the stock in the beginning of April. With the stock now down considerably in the last three months, I think investors should consider buying it on the pullback.
Published on Jun 23, 2016
By Akshansh Gandhi

Copyrighted 2020. Content published with author's permission.

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