Investors don’t really like change, and Palo Alto’s (PANW)
decision to embrace more cloud-centric security offerings and alter its
billing/sales approach seems to be causing some concern with at least
some analysts and investors. On top of that, the company’s ongoing
willingness to spend up on M&A has let some to ask questions along
the lines of “well … if they’re so good, why do they need to do that?”
One
of the things that I’ve always liked about Palo Alto is the company’s
efforts to be proactive/active more than reactive (compared to, say, Check Point (CHKP)
) and I believe these latest moves are in keeping with that. What
concerns me more at this point is the relatively high overall valuation
levels in the software/tech space and the likelihood of slowing growth
at Palo Alto (“trees don’t grow to the sky” and all that), given the
central role growth plays in driving software company valuations. Even
so, these shares look undervalued and still interesting today.
Wall Street Seeing More Risk As Palo Alto Networks Evolves With The Times
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