Palo Alto Networks releases its latest earnings on Monday after the market closes, which could affect the stocks’ first half of the week.
PANW – Daily Chart
The price of PANW has met resistance at the $345.45 level and looks bearish for the release. Weakness in the stock could hurt the recent rebound in the stock.
Palo Alto has seen its stock price soar by 60% over the last year as data centre adoption has driven a need for online security. High-profile security attacks at large corporations have also helped the push for protection.
“Bad actors can get in and out of companies’ infrastructure in about three hours now,” said Nikesh Arora, chairman and CEO, during Bank of America Securities’ 2024 Global Technology Conference on June 4. “It used to be days, but now it’s down to three hours.”
“I can get in and out of a company, exfiltrate terabytes of data. You have to be able to find me in there and stop me from reading data in three hours,” he said. “You can’t do it.”
Cyber attacks are becoming increasingly costly, with worldwide cybercrime predicted to cost the world $9.5 trillion this year, according to Cybersecurity Ventures, and could reach $10.5 trillion in 2025.
A survey of over 3,000 risk management professionals from over 90 countries and territories in the 2024 Allianz Risk Barometer said cyber incidents are the top global risk.
In May, Palo Alto reported third-quarter earnings of $1.32 a share, up 20% from a year ago and higher than analysts’ consensus of $1.25. Revenue of $2 billion was up 15% from a year earlier and ahead of Wall Street’s call for $1.97 billion.
The Street’s Bruce Kamich wrote, “the charts of PANW are mixed — some bullish and some bearish.”
“In this current unsettled environment for the broader market averages, I would stand aside for now and take no position,” he said. “Traders who are long PANW should use a sell stop at $280,” he added.
