Palo Alto Networks (PANW)

Was upgraded today. Billings remain up for them. Shares are up 27% YTD. They bought $650 million worth of companies to end last year, and he's excited by that. Expects shares to rise further.

Next to semiconductors, cybersecurity is one of the great secular growth areas. Hacks are proliferating. An area you have to own. Cybersecurity covers huge government risk and business risk. Really strong secular growth for years to come.

An analyst recommend Palo Alto, Fortinet and Crowdstrike, citing tailwinds that continue to be increasing cyber-threats, SEC requiring companies to disclose hacks, and easier growth comps. Nothing new. He likes this space.

Cybersecurity will remain in strong demand. PANW is up 110% this year and he continues to like and own it. His favourite in this space. Has lots of government contracts.

These companies are fantastic, but lots of future success built into prices, trading at very high multiples. He tries to take the theme and participate in areas that aren't as expensive. Stays away from the focused, high-risk stocks, because lots has to go right.

He bought it for a trade so has sold it. If you own it you could hold or trim some. Also you could buy it at the $250 mark.

Almost fully valued. A niche player, geared more toward the small- and medium-size enterprises. Firewall security is their main ticket. Could buy here, but keep powder dry to add lower.

Reported after hours and share are being clobbered. They beat earnings, though billings were light and so was guidance. But he's confused with how the company counts payments by customers.

It reports Wednesday, but shares lately have been held back by a weak report from lesser competitor, Fortinet. He sees upside.

Stock price has run up, but acquisitions have integrated really well. Strong management team, understanding what they can build internally and what they need to go to the market for. Well run. No reason to sell today.

Fortinet's 16% plunge today is unique to Fortinet, not Palo Alto and other peers. Prefers Palo because it's more diversified than Fortinet and has a better cash flow yield.

Best in show in cybersecurity. Shares are now down from their high, so it's an opportunity.

Lumps them in with Fortinet and Crowdstrike, which are much cheaper. PANW is great for the packages they sell to small/medium-size companies. Would buy now, add more at $230 and at $220.

He expected a good quarter, while the street suspected a bad one because the quarter was getting released late Friday, something no company does unless there's trouble. They knew nothing! PANW soared 15% today because of their strong quarter (and short sellers)

They report after the bell today. Microsoft launched two products that directly compete with PANW, which triggered PANW's decline from its all-time high a few months ago. Also, shares popped mostly because it got included in the S&P. MSFT is a real threat. Third, enterprise spending on cybersecurity is slowing.