Palo Alto Networks (PANW)

Beat on top and bottom lines for Q4. Lowered guidance for 2024, but also lowered the billings (new business) which was quite a surprise. A generalist in cybersecurity, but also caters to small- and medium-sized businesses. They do wonderfully in the current quarter and then get very conservative. Lots of macro uncertainty. Don't want to have to revise down during the quarter. Better to surprise to the upside than have to come in and apologize. 

Doesn't deserve the 25% haircut. Options plays have to play out. You could step in today with 1/3 of your allotment, and then watch the price action.

You can own so many stocks and he didn't buy cybersecurity. Also, he wonders if and when tech giants like Microsoft, Alphabet and Apple will get into this space. PANW and Crowdstrike have performed well though.

Cybersecurity is mandatory and a universal theme in the market. PANW is in areas of this which are necessity-driven. That said, this and Crowdstrike (he just took some profits) are overbought.

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.