Amidst COVID-19 Induced Market Panic, Palo Alto Networks Goes Shopping
In the midst of the coronavirus turmoil that has whisked stocks away into bear market territory, Palo Alto Networks (NYSE: PANW) has made some interesting moves. No, its stock has not been immune to the sharp sell-off -- shares are down 28% year to date. Actual business results have been impacted as well with the company's fiscal 2020 second quarter results missing its own expectations.
However, it's just this kind of economic disruption that paves the way for some businesses to strengthen their position in the long run. Palo Alto just announced yet another acquisition, CloudGenix, for $420 million. Per its last quarterly update, the cybersecurity leader is also doing an accelerated share repurchase program this quarter. Shelling out gobs of cash right now may seem like the wrong move, but there are good, counterintuitive reasons Palo Alto should be rewarded for doing so.
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Source Fool.com
