Palo Alto Networks (PANW)

Guidance disappointed. Is -6% today and -16% for the year. It beat the top and bottom lines. They just closed Cyber Ark. AI was serve as a catalyst for cybersecurity stocks--companies will need cybersecurity, and the market misunderstands that.

They will solve the new cyber threats, but it will take time and money. This sell-off is probably a buying opportunity.

Is sticking with it, despite being town 14% this year. Is one of the two 2 cybersecurity stocks. Customers depend on it so much that he sees no AI disruption. In fact, AI gives criminals more tools to attack.

Other names in the space are more geared to large enterprise. This one does large, medium, and small companies. Cybersecurity is a difficult place. A lot of names went through support levels, just not the place to be right now. He'd absolutely lighten up.

Cybersecurity companies won't be going away, not easily replaced. Drop could be due to multiple compression. Just because a stock used to be $xxx, doesn't mean that was the value of it. Good company, and maybe the price should never have been $220. 

Going forward, these types of companies should be good. They'll be volatile.

As for its being part of an ETF, there's a good chance it would be in a software ETF and would (theoretically) be drawn down along with that sector.

Volatile. It and its cybersecurity peers sold off last Novembers over investor fears that this sector can be disrupted by AI. The sector is a little safer among software stocks. He likes this as a hold, but have to be patient and dollar-cost average down. 

Deals with online security. Don't buy because of its valuation - it is too expensive. Everyone attached to the security market is focusing on the top line. Checkpoint (CHKP) is cheaper. Palo Alto is good too.

He's been in this name before, but doesn't own anything in the space right now. All the names are pricey. A larger player, but it's not inexpensive.

The Cyberark acquisition will be accretive.

Cybersecurity recently is seeing a modest correction over a feeling that IT spending will pull back. This is puzzling, but the cyber threat remains and there's a need for security. We need strong guidance from PANW to see positive momentum. They report today.

Likes their purchase of CyberArk which will be accretive.

Really likes it, especially because they bought CYBR (one of his stocks ;)  Difficult call at this point. His price target is $185, and today it's trading ~$177. Then it will have to digest CYBR (still needs both regulatory and shareholder approval). China may use this as a pawn in negotiations. 

For new $$, he'd choose ANET instead.

CRWD and PANW are volatile, but demand is so strong for cybersecurity that these are long-term winners.

Cybersecurity is the utility of technology, a necessity. Not economically sensitive, so won't get a big boost in a strong economy. But it's very consistent.

He could own this, but doesn't. Instead, he owns CRWD and a cyber ETF. Expectations in the group are high, and the multiples aren't cheap. He doesn't actually have a ton of tech exposure right now, having moved to more economically sensitive names.

Reasonably priced. Safer than CRWD, though slower-growing. Overall security software space is very attractive -- one of the most defensive parts of the software industry.