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Palo Alto Networks PANW and Okta OKTA are both U.S.-based cybersecurity companies that specialize in protecting enterprises from evolving digital threats. While PANW focuses broadly on next-gen firewalls, cloud security and AI-driven threat detection, OKTA focuses on identity and access management, providing cloud-based solutions that help businesses safeguard user data.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
Palo Alto Networks (PANW -0.29%) stock has been in fine form on the stock market in the past three months, clocking healthy gains of 18% as of this writing. That's impressive, considering that investors were not impressed when the company released its fiscal 2025 third-quarter results (for the three months ended April 30) on May 20.
Palo Alto Networks (PANW) closed at $197.58 in the latest trading session, marking a -3.45% move from the prior day.
Palo Alto Networks' platform strategy accelerates with big wins and just 2% penetration, leaving major room for customer expansion.
Zacks.com users have recently been watching Palo Alto (PANW) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Palo Alto Networks is evolving into a unified security platform, leveraging AI and integration to drive growth, margin expansion, and customer consolidation. Platformization is accelerating, with multi-product adoption fueling higher retention, larger deals, and a widening competitive moat through AI-driven telemetry. Financials remain robust: double-digit revenue growth, expanding margins, strong free cash flow, and forward visibility despite a premium valuation and macro risks.
While most tech investors are focused on artificial intelligence (AI), cybersecurity remains an important and growing market. These companies are using AI to help boost protection, while also trying to prevent the added risk that comes with AI.
"Cybersecurity is going to continue to grow," says Alex Hammerstone. Companies like CrowdStrike (CRWD), Palo Alto Networks (PANW), and ZScaler (ZS) have seen tremendous growth over the last year, a trend Alex says will continue with larger companies looking to boost online security.
Cybersecurity researchers have identified online datasets that contained a whopping 16 billion login credentials across multiple platforms, including Apple, Facebook and Google. While it is unclear the extent to which the exposed data still poses cybersecurity threats, the scale of the findings has raised alarm about the growing prevalence of "infostealer" malware.