Posted 2/21/2024, 1:36:00 PM
Palo Alto Networks Shares Plunge on Concerns Over Strategic Shift and Margin Impact
- Palo Alto Networks stock headed for worst day ever on worries about strategic pivot expected to hurt near-term results
- Company shifting to platform model, consolidating products, which could frustrate partners and require sales force training
- Platform reliance on AI may require more investment, potentially hitting margins
- Giving away some product for free to incentivize longer-term platform deals will negatively impact business over next 12-18 months
- Analyst views mixed - some concerned about abruptness of change and demand issues, others see long-term benefits from shift