Yahoo Finance If You Invested $1000 in Palo Alto Networks a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Palo Alto Networks (PANW) ten years ago? It may not have been easy to hold on to PANW for all that time, but if you did, how much would your investment be worth today?
Palo Alto Networks' Business In-Depth
With that in mind, let's take a look at Palo Alto Networks' main business drivers.
Santa Clara, CA-based Palo Alto Networks, Inc. offers network security solutions to enterprises, service providers and government entities worldwide.
The company's next generation firewall products deliver natively integrated application, user, and content visibility and control through its operating system, hardware and software architecture. It serves the enterprise network security market, which includes Firewall, Unified Threat Management (UTM), Web Gateway, Intrusion Detection and Prevention, and Virtual Private Network technologies.
Through its products and subscription services, Palo Alto provides integrated protection against dynamic security threats while simplifying the IT security infrastructure. Its solutions incorporate application-specific integrated circuits, hardware architecture, operating system, and associated security and networking functions.
The company’s network security gateways protect customer data, reduce security complexities and lower total cost of ownership. Customers can implement their security policies on traffic between internal networks and the Internet, as well as between internal and private networks shared with partners.
The company has a single operating segment. However, the company announces its revenues from products and services separately. For fiscal 2022, the company reported total revenues of $5.50 billion, which grew 29% year over year.
Palo Alto’s fiscal 2022 revenues from its products increased 21.4% year over year to $1.36 billion. Revenues from subscriptions and support grew 31.8% to $4.14 billion.
Further, Palo Alto operates across different geographic regions, including the Americas, Europe, the Middle East, and Africa (EMEA) and the Asia-Pacific and Japan (APAC).
The company faces competition from large companies like Cisco and Juniper, independent security vendors such as Symantec, Check Point, Fortinet, FireEye and several other small companies.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Palo Alto Networks ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in June 2013 would be worth $13,194.21, or a 1,219.42% gain, as of June 1, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
The S&P 500 rose 156.31% and the price of gold increased 36.14% over the same time frame in comparison.
Going forward, analysts are expecting more upside for PANW.
Palo Alto has been benefiting from continuous deal wins and increasing adoption of the company’s next-generation security platforms, attributable to the rise in remote work environment and need for stronger security. Growing traction in Prisma and Cortex offerings are acting as a tailwind. Palo Alto continues to acquire new customers and increase wallet share with existing customers. Nonetheless, the company’s higher sales incentives related to Next-Generation Security products are likely to continue negatively impacting its bottom-line results. Forex headwinds and higher marketing and sales expenses are likely to continue hurting its profitability. Moreover, high acquisition related expenses are denting the margins. Shares of the company underperformed in the past six months.
The stock has jumped 20.11% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 14 higher, for fiscal 2023; the consensus estimate has moved up as well.
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Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
