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Palo Alto Networks: Platformization Isn't Working

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  • Palo Alto Networks' shift to platformization led to a $100 stock drop, but the stock has already mostly recovered.
  • Despite a 20% RPO growth target, revenue growth lags at 13-14%, with EPS only rising 10% due to AI spending.
  • The stock remains overpriced, trading at high multiples despite modest growth forecasts and potential risks from the CrowdStrike outage.
  • Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios. Learn More »

At the start of the year, Palo Alto Networks, Inc. (NASDAQ:PANW) shocked the market with a planned strategy shift to the "platformization" concept. The stock fell about $100 on the news, yet the cybersecurity stock is now back close to prior levels. My investment thesis remains Bearish on Palo Alto Networks with growth still struggling to meet the elevated valuation levels.


Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 

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