Topic: How To Invest

Hi Pat: I am interested in your view on Palo Alto Networks. Thank you for your great advice, as always.

Article Excerpt

Palo Alto Networks Inc., $164.22, symbol PANW on New York (Shares outstanding: 83.7 million; Market cap: $13.7 billion, www.paloaltonetworks.com), designs and makes Internet equipment and software, called firewalls, for protecting computers and mobile devices from online attacks. Instead of imposing blanket bans on entire networks, Palo Alto’s systems analyze traffic and let network administrators control users’ access to certain websites and applications. Over 24,000 businesses in 140 countries use the company’s products. Palo Alto first sold shares to the public at $42.00 and began trading on New York on July 19, 2012. In April 2014, the company paid $177.6 million in cash and shares for Israel-based cyber-security firm Cyvera Ltd. Unlike traditional security software, which typically reacts to problems after an attack, Cyvera’s Traps system creates obstacles that stop or slow down intruders before they can reach sensitive information. In its fiscal 2015 third quarter, which ended April 30, 2015, Palo Alto’s earnings before unusual items jumped 134.5%, to $20.5 million from $8.7 million…