Palo Alto Networks ended a six-session losing streak, rising 2.25% to $172.89 on Wednesday. The company's downward trend started on July 29 after reports, but it reversed course on Wednesday to close in the green territory.
Palo Alto Networks Inc. (PANW) ended a six-session losing streak, rising 2.25% to $172.89 on Wednesday, July 1, 2025. The company's downward trend began on July 29 after reports surfaced suggesting that the company was in talks to purchase CyberArk Software (CYBR). Shares of the company closed -5.21% following the WSJ report. On July 30, Palo Alto Networks confirmed that it had agreed to acquire the Israeli cybersecurity provider at an equity value of about $25B, further pressuring its shares. Between July 29 and August 5, the stock has declined nearly 13%. On a YTD basis, it has lost 7.1% contrasting with a 7.1% rise in the S&P500 market [4].
The acquisition of CyberArk Software is seen as transformational and might reshape the cybersecurity market. Wedbush analyst Daniel Ives wrote that the deal stands out as a strategic home run deal by PANW to strengthen its platformization strategy [4]. However, the deal has brought minimal revenue and won't be FCF accretive until FY 2028, according to Stone Fox Capital, which rated the stock as Sell following the deal [4].
Despite the recent downward trend, Palo Alto Networks remains a significant player in the cybersecurity industry. The company provides a range of cybersecurity solutions, including network security platforms, cloud security solutions, and security operation solutions. It sells its products and services through channel partners and directly to medium to large enterprises, service providers, and government entities [3].
Investors should keep an eye on Palo Alto Networks' upcoming earnings report, scheduled for August 18, 2025. The company is predicted to post an EPS of $0.88, indicating a 17.33% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.5 billion, up 14.18% from the year-ago period [2].
References:
[1] https://www.investing.com/equities/palo-alto-netwrk
[2] https://finance.yahoo.com/news/palo-alto-networks-panw-stock-214504320.html
[3] https://finance.yahoo.com/quote/PANW/
[4] https://seekingalpha.com/news/4480332-palo-alto-networks-to-snap-six-straight-sessions-of-losses
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