Palo Alto Networks Stock Plunges 29% on Strategy Shift, But Long-Term AI Growth Intact
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Palo Alto Networks is a leader in AI-based cybersecurity, but its stock recently plunged 29% due to a shift in business strategy.
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The company is moving towards a "platformization" strategy to capture more customers long-term as contracts expire. This hit guidance short-term.
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Palo Alto aims to reach $15B in annual revenue by 2030, representing 87.5% growth from today. AI opportunities provide further upside.
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The frequency of AI-generated phishing emails has increased 12x, presenting a growing endpoint security opportunity.
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At 29% off highs, Palo Alto stock presents an opportunity for long-term investors willing to wait out near-term uncertainty.