How Risky Is Palo Alto Networks Stock?
Palo Alto Networks (NYSE: PANW) posted a strong fiscal third quarter, and management raised its full-year guidance amid the coronavirus uncertainties. Yet investors should remain prudent as the stock has become riskier: The cybersecurity specialist's results aren't as strong as they look like, and the stock price is back to high levels.
The cybersecurity specialist sells legacy hardware security devices -- firewalls and gateways -- that protect enterprises' on-premises data centers from external threats. But given the rise of cloud computing, Palo Alto has been enhancing its portfolio with cloud-based security solutions thanks to acquisitions and internal developments.
That transition materialized over the last several quarters, and the company was ready to address the surge in demand for cloud cybersecurity solutions to protect the computing environment of many employees that were requested to work from home to try to limit the spread of COVID-19.
Source Fool.com
