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Update - Sept. 2, 2026 Palo Alto Networks with the solid beat as expected. The stock just has nowhere to go at this valuation, leading to the 9% dip following earnings. The cybersecurity company forecast a FY27 EPS of only $4.175 for only around 9% growth while the stock still trades at 78.5x EPS targets. The numbers just don't support the big rally.  -FQ4 Non-GAAP EPS of $1.02 beats by $0.04. -Revenue of $3.41B (+34.3% Y/Y) beats by $60M. These FY27 guidance numbers appear very low. -Next-Generation Security ARR of $11.075 billion to $11.175 billion, representing year-over-year growth of 22% to 23%. -Remaining performance obligations of $25.2 billion to $25.4 billion, representing year-over-year growth of 19% to 20%.   Original article posted on Aug. 29 Palo Alto Networks trades near all-time highs, with the stock valuation far outpacing business fundamentals and organic growth trends. PANW's organic growth slowed to ~14% in the last quarter, while EPS growth is muted due to ...

    Palo Alto Networks, Inc. faces valuation pressure from AI-driven competition and slowing organic growth despite platformization efforts. Recent large acquisitions—CyberArk and Chronosphere—signal gaps in PANW's platform strategy and introduce integration risks. Organic revenue growth is decelerating, with FQ3 organic guidance at only 13% and legacy business showing signs of slowdown. PANW stock still trades at 41x FY27 EPS, with a $120 valuation target, reflecting AI risks and premium multiples. 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 » Palo Alto Networks, Inc. ( PANW ), has slumped back towards the yearly lows due to the AI threat. Even if AI doesn't replace cybersecurity, the threat will continue hitting the  valuation multiples  of the  stock. My i nvestment thesis  remains Bearish on the stock due to its expensive valuation compared to the ...

  Palo Alto Networks is aggressively acquiring CyberArk and Chronosphere for a combined $28.4B to fill platform gaps, signaling strategic weaknesses. The cybersecurity company is still struggling to boost growth after the cybersecurity platformization shift with a FY26 forecast of only 14%. Recent deals will boost reported growth rates above 30%, but underlying organic growth remains lackluster and integration risks are elevated. The stock's valuation remains stretched at nearly 50x FY26 EPS and over 12x revenue, despite slowing organic growth and heavy shareholder dilution. Only months ago,  Palo Alto Networks Inc.  ( PANW ) bought  CyberArk Software Ltd.  ( CYBR ) in a deal where investors were warned to fade the rally. The cybersecurity company has long promoted  the platformization concept, but the company announced another deal to acquire  Chronosphere  highlighting the issues with the business model. My  investment thesis  remains ...

  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...

FireEye announced a new CFO who is expected to join the company on September 21. The stock has failed to keep up with industry peers in a large part due to a lack of financial discipline. Investors should keep an eye on the company with an opportunity to scoop up cheap shares if the new CFO can keep growth and instill discipline. The hiring of a new CFO is a big step forward for FireEye (NASDAQ: FEYE ). Normally, the abrupt exit of a CFO is a major red flag, but the hiring of a replacement doesn't garner much interest. Due to the unique situation of the cybersecurity stock and frustrations over financial discipline, this hiring has more than the normal relevance. Read the full article on Seeking Alpha. Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Even with Splunk (NASDAQ: SPLK ) trading down substantially from the recent market weakness, the stock is still very overvalued. The stock was one of the hottest IPOs in 2012 and recently hit all time highs while trading at ridiculously high multiples. Splunk is a leading provider of software for real-time operational intelligence. The company forecast up to 38% revenue growth for the year, but is that growth enough to justify more » Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Even with Palo Alto Networks (NYSE: PANW ) trading down substantially after reporting weak earnings the stock is still overvalued. The stock was one of the hottest IPOs in 2012 and has always traded at lofty market multiples. Palo Alto Networks is a leading supplier of next generation network security for enterprises, service providers, and government entities to secure their networks. The company forecast up to 45% revenue growth in the more » Disclosure: No positions mentioned. Please review the disclaimer page for more details.

Last week, both Palo Alto Networks ( PANW ) and Splunk ( SPLK ) released earnings for the quarter ending January that saw massive revenue growth. While both stocks had hot IPOs in 2012 and trade at what are generally considered expensive multiples, they had different reactions after their respective earnings reports. Palo Alto is a leading network security provider that competes against the likes of Cisco Systems ( CSCO ) and Juniper Networks ( JNPR ) , while Splunk is a provider of real-time data analysis commonly referred to as "Big Data." Palo Alto is more focused on taking market share, while Splunk is creating a whole new market. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

The main 3D printing companies, 3D Systems and Stratasys, recently hit all-time highs so naturally this would be a great time for a related IPO. Industrial 3D printing firm ExOne (NASDAQ: XONE ) plans to join the party this week. A major surprise popped up when reading the prospectus . The company harkens back to the technology IPOs of the late 1990s when a stock had as much hope as hype. The more » Disclosure: Long GSVC. Please review the disclaimer page for more details. 

Even with the recent supply issues of competitor OCZ Technology (OCZ) , Fusion-io (FIO) remains a market leader so far unaffected by the supposed supply issues in the solid state drive (SSD) sector. The stock is generally considered expensive, but once compared to other tech stocks, the relative valuation in the sector and the stock appears clearer. The company is a leader in delivering storage solutions that accelerate virtualization, databases, cloud computing, and big data. The sector is one of the fastest growing around, with the two leading companies reporting revenue growth in the 80% range recently. But why are the companies trading at lower valuations than other hot tech stocks? Read the full article at Seeking Alpha. Disclosure: Long OCZ. Please review the disclaimer page for more details. 

After it released its Q1 2013 earnings report on July 10th, OCZ Technology (OCZ) dropped over 20% in a matter of days. Importantly, though, the stock did not hit a new 52 week low below $4.14, suggesting that maybe the worst was finally over for long suffering shareholders. The leading provider of high-performance solid-state drives (SSDs) for computing devices and systems met on the revenue line and missed on the bottom line. So naturally the 20% selloff must've been justified with a earnings miss? Earnings Miss The company reported a $0.17 loss versus expectations of a $0.12 loss. The bigger than expected loss cemented all of the fears of the longs and encouraged the shorts to press further on the stock. Read the full article at Seeking Alpha. Disclsoure: Long OCZ. Please review the disclaimer page for more details. 

Palo Alto Networks (PANW) went public on Friday trading above the IPO price of $42. The company originally filed for a range of $34 to $37. See S-1 here. The initial trade was above $55 for a 30% gain. Palo Alto Networks pioneered the next generation of network security with an innovative platform that allows enterprises and service providers to secure their network and safely enable the increasingly complex and rapidly growing number of applications running on their networks. According to Gartner the company has done a good job of marrying enterprise firewall and intrusion prevention system technologies into a single, tightly integrated solution. Read the full article at Seeking Alpha. Disclosure: Long CSCO. Please review the disclaimer page for more details.