Great job guys. I’ve owned PANW since they were a Blue Coat competitor in about 2011. Long PANW and FTNT on SASE.
@chipstockinvestor
7 ай бұрын
Well done, you've made some serious coin on that one!
@cyfrowymuza
7 ай бұрын
great analysis as usual, you guys are gurus when it comes to semis and cyber security :)
@maguilla
6 ай бұрын
If is Good for pelosi is good for me 😮
@loganlasvegas
7 ай бұрын
Cybersecurity is clearly a vast, highly complex, and multidimensional industry. PANW is clearly a leader in a lot of the cyber disciplines, but they’re not the best in all of them (no company is). Just look at Gartner’s Magic quadrants… all the players, disciplines, technologies, verticals. I can’t see a single vendor being a 1 stop shop for all cyber needs. Therefore, “Platformization” or bundling is not going to work for your mega cap large enterprises. This isn’t car insurance or TV channels. Also, enjoyed your honest take here, but no mention of CRWD?
@chipstockinvestor
7 ай бұрын
We'll definitely be talking about CRWD next week!
@PascalH9191
7 ай бұрын
@@chipstockinvestorCRWD is a monster
@yi-juhuang8204
6 ай бұрын
PANW is a stock that I’m long on. I’ve put only 3K in so far at 280. But I’ll wait for a dip before putting in more
@justyouraverageguy9109
7 ай бұрын
Thanks for the great video as always! Would you consider doing a video on Equinix, the data center company? Similar industry but obviously not chip/cyber stock.
@chipstockinvestor
7 ай бұрын
Ah yes the colocation real estate plays. We cover those too, but they've never really fit our personal needs. Lots on our plate at the moment, maybe we'll circle back to these later.
palo - crwd ???? i have to admit i loaded up on palo last wk this thing will come back and prob quite fast and beyond. ftnt also nice position to hold long term.
@SpinTheFlo
7 ай бұрын
Pelosi invested 1m$. How come no one mentions this??
@maguilla
6 ай бұрын
You know why 😂 come on!
@cedricdellafaille1361
7 ай бұрын
I bought some of the stock. At this drop! Ow yes finally some weakness
@alfredodelpino
7 ай бұрын
another great video explanation. I´m wiser with every new posting. Thanks guys!
@gk9670
6 ай бұрын
Terrific analysis. I work in cyber security and this is a great to hear a 3rd party view on Palo Alto strategy. I do want to mention that their "network security" includes both private datacenters and public cloud. Their "prisma cloud" is cloud only. It's a small nitpick.
@chipstockinvestor
6 ай бұрын
Thank you for watching, and for the "nitpick"! It's an important point, that there is indeed two different kinds of network security under the hood at PANW. Appreciate it!
@blackphillip2393
7 ай бұрын
Very timely for me, thank you. Had been trimming to book profits and stopped out when it started crashing and have now bought back in at about 4% of my portfolio.
@shannonoliver7992
7 ай бұрын
Excellent analysis; thanks for digging deeper into Palo Alto Networks; more than meets the eye. Long term hold for me.
@larse2678
7 ай бұрын
Great new visualization! Looking forward to the cyber video next week. Hope you have a few words on Cisco/Splunk? Cisco probably a contender for most boring stock ;-) but could also be "what Microsoft was" - a very cheep but highly profitable sleeping giant about to wake up and choose violence.
@chipstockinvestor
7 ай бұрын
We will definitely mention that one. Cisco keeps losing market share though! They're far beyond that battle though, and just trying to get profitable ROI.
@yosefbp
6 ай бұрын
Excessive stock based compensation for employees continously diluting investors is a red flag, simple NO-NO, staying away from this company, in the other hand, see FTNT...
@chipstockinvestor
6 ай бұрын
We covered FTNT last month, we've owned it for years
@missunique65
7 ай бұрын
kudos again e PANW and for NOT talking about NVDA!!!
@chipstockinvestor
7 ай бұрын
😉
@riffsoffov9291
7 ай бұрын
Thanks for the video. Do other cyber security companies have a broad enough range of products to copy Palo Alto's strategy? I'm thinking they might not want to let Palo Alto get all the benefit of customers consolidating vendors.
@chipstockinvestor
7 ай бұрын
You're definitely right Riffs. Our thought was Arora was specifically talking about smaller players and startups, not the other big platforms, but we'll have to see.
@davidtothemax1
7 ай бұрын
ty for your youtube channel/podcast. huge huge fan
@thomasguan1918
7 ай бұрын
A point against platformization is that companies often have requirements to have multiple vendors to reduce the chances of a hack due to an exploit in a single vendors product. This issue can only be mitigated by integrating multiple vendors products.
@chipstockinvestor
7 ай бұрын
Very true Thomas, critical redundancy is a key part of a good cybersecurity strategy
@ElodieLue
7 ай бұрын
Thanks for this video from France (Merci ^^). I also follow the podcast :).
@chipstockinvestor
7 ай бұрын
Thanks Elodie! Hope you're having a good weekend!
@normansteinmetz643
7 ай бұрын
Sold my Indie Semiconductor and Siltronic positions to get my Palo Alto position to a full position. I bought small amounts within the last months but now was the time to get my position done. Thank you for the video, can't wait for your Cyber Security Manual
@chipstockinvestor
7 ай бұрын
Thanks Norman, glad you found this helpful!
@dhruvmaurya347
7 ай бұрын
Thanks for the great video guys! I’m not sure if Nikesh’s approach of offering free service until the customer runs out of their existing contract is right because what if the existing vendors product is better and /or cheaper so why would customer switch to Palo Alto
@chipstockinvestor
7 ай бұрын
It certainly may not work! But if a customer goes ahead and installs PANW hardware and software, it's because they've signed a contract that will go in force when the competitor's contract is over.
@dhruvmaurya347
7 ай бұрын
@@chipstockinvestor I see your point. I just hope it works for panw as it seems a great tactic
@geordiehawkins7372
7 ай бұрын
Great insight not only on earnings but explaining the products PANW. I own CRWD and ZS, always felt they were best of breed in their specialities, endpoint security and zero trust internet security. PANW seems like a one stop shop, has everything but nothing that is really best of breed. Just my opinion.
@chipstockinvestor
7 ай бұрын
Hey Geordie, thanks for watching! You aren't wrong, PANW is the one stop shop of sorts. But one type they do absolutely lead in is SASE security.
@TheJovenyoung
7 ай бұрын
@@chipstockinvestor For me is clear PANW management sees that other competitors are as good as them in many products and competition is increasing. For me looks like a price war and race to the bottom starting which i dont like. For me FTNT is a better play (as investor) as they are also 1 stop shop, have a proven business model, financially are much stronger (Smaller scale tho) and are covering the gaps in SASE. And dont dilute investors whereas PANW needs to improve their margins. Not sure ZS and CRWD are really as good as PANW/FTNT tho
@malonequinn3559
7 ай бұрын
I want to own Palo Alto but it’s still expensive as the non gaap earnings add back in the stock based compensation expenses so in actuality that’s added 15% to operating margins in the quarter. On a cash flow basis it’s great but that dilution is really preventing me from owning it at these prices. I prefer fortinet just from a value perspective as they’ve proven they can grow true margins as there operating margins account for very little dilution.
@andreinedelcu5330
7 ай бұрын
Not a good look when you have to spend more to buy revenue, than your revenue growth, especially at such a high valuation. Google famously has a huge portion of their costs as TAC, but they have huge returns for that from a quasi-monopoly position, and a PE of 24. I doubt this pay-to-play strategy would work in the long term in the cybersecurity space. And the share price downturn correctly reflected this state of facts.
@chipstockinvestor
7 ай бұрын
Fair enough, the stock price was frothy the last two months for no reason. Hyper-competition is endemic in this industry. Consolidation is actively underway.
@davidcherve
7 ай бұрын
Spend more to buy revenue is also called advertising
@andreinedelcu5330
7 ай бұрын
@@davidcherve In the case of Palo Alto, it's offering freebies to customers without any commitment to buy. Betting on a market strategy that aims to build a "platform monopoly" in a sector that is highly diversified, distributed, multi-platform, multi-objective and permanently subject to disruption seems like a bad idea.
@alexkoch14
7 ай бұрын
Thank you! What are your thoughts on FTNT compared to PANW from a business and stock growth perspective? It seems to me like they have a similar security offerings at a lower price, and are expecting the same level of growth. If you had to pick one, which would be your pick?
@chipstockinvestor
7 ай бұрын
Hey Alex, we own both, they're our oldest cyber stock holdings, and they have some overlap. If you look at the FTNT video from a few weeks ago, we explain a key difference is FTNT is still very much hardware based. But we'll delve into that more next week.
@alexkoch14
7 ай бұрын
@@chipstockinvestor thanks for the reply. From my understanding, companies these days want a unified cybersecurity offering, not wanting something different for SASE than for end point. Am I correct in saying that FTNT and PANW are the only two major players who offer the same full suite of offerings, as in they offer the exact same thing? If so, FTNT is the more value oriented product, and is expected to grow revenue at the same rate as PANW, then wouldn’t FTNT be the no brainer pick? They might have an “inferior” product, but it’s cheaper. So to a business executive, the choice is clear.
@chipstockinvestor
7 ай бұрын
@@alexkoch14 this could be a good way to look at it, yes. FTNT also has the leading hardware, they design their own chips, and that can be extended to the SASE service they are building.
@madworker1927
7 ай бұрын
Why Indie semiconductor employees is 0 any idea?
@markriley5931
7 ай бұрын
Very helpful. Thank you 🙏
@chipstockinvestor
7 ай бұрын
You’re welcome 😊
@librisc
7 ай бұрын
i grabbed 142 shares at 267
@dinosaurdude5668
7 ай бұрын
Thank you for the video
@chipstockinvestor
7 ай бұрын
Thanks for watching!
@sibasispanda8948
7 ай бұрын
Would love to get your thoughts on Cloudflare and their security offerings. They have been growing at a healthy clip.
I feel like crowdstrike is the leader and taking customer, crowd strike ceo always sound so confident.
@chipstockinvestor
7 ай бұрын
Different type of cybersecurity than PANW and FTNT
@businesswithredbeard5567
7 ай бұрын
2:20 Yeah boiiii! Been looking forward to the chart. You guys are the best 💪
@chipstockinvestor
7 ай бұрын
🙌
@dinosaurdude5668
7 ай бұрын
I love the illusions as well, keep at it!
@curtsnarr-y6u
7 ай бұрын
Disappointing guidance combined with dilution earns the 25% drop seen. And, giving away product to gain customer entry signals first shot of a price war to me. Fortinet and others won't sit and just watch. I stopped out during the call and salvaged a gain . Staying out until the strategy proves results - seems risky. There are better opportunities. Thank you for you're detailed analysis.
@Kapparillo
7 ай бұрын
You misunderstood the giving away free product strategy. PANW is not giving away product when they are in competition with companies like Fortinet or other platform vendors. PANW is giving away free product when competing against single point products. PANW will singlehandedly destroy a lot of small point product companies with this strategy.
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