Wrt Future growth. Stock value ok or too low you think? 3.4B in sales. 23B market cap. ~7X sales Why is valuation in this sector low? If you look at cloud companies its crazy. The network security business is high margin I thought. Income still negative though after 14-15 years ? How's the roadmap looking for future products ? Wrt WLB/work culture (I know it's different for different teams but I'm asking for overall) Wrt competition ? Which company is a major threat to PANW right now? Is it JNPR ? How's the mobility between groups? Most orgs are pretty flat so I'm hoping people can move around a lot and grow?
Panw shift to cloud has hurt us on the hardware side. The cloud side, our competition stems from companies like zscaler and the cloud platforms themselves. Cloud companies are seen as the future, so they trade at a higher multiple, plus they can scale near infinitely. Ftnt post is correct about the hardware, and panw hw "bread and butter" had been deprioritized for a few quarters.
That's why they are now focussing on hw. You think hw at PANW has a good future?
I don't think on prem solutions are going to go away, though their growth is limited. A lot of our revenue is actually from subscription services that work on our platform anywhere, be it hw or sw (cloud). We are definitely going to stay competitive in the hw space. Our leadership won't make that mistake twice.
Don’t join us but buy our stocks
Why
It always feels better when you are a shareholder compare to employee
Going through big growing pains right now with constant reorgs, attrition is visible, and stock price hasn't been inspiring. stock price today is same as when i joined in 2018. if you're used to a high growth environment then this might be your normal. not that we're high growth but the pace of change and experimentation is closer to that. WLB is bad. revenue is growing though so i think most people are hopeful about what's on the other side.
How would you compare it to cloud companies like Zscaler or Crowdstrike or a more direct competitor like Fortinet?
I can't since I've never worked there. Just speculating but I assume it feels faster and more agile there. One of my pain points now is PAN FEELS big but still makes decisions like it's small so there's a lot of execution missteps. Not as much of a problem if decisions are made quickly but you can also execute quickly. If you join a speedboat at PAN (non-hardware) it might be more like this.
Strata team is doing good actually
Cloud units Engineering culture is really bad so depends on what team you're joining.
Security is a very saturated market and don’t get the same sky high valuations. Symantec, McAfee can be looked on for past history on valuations in this market
Why do you feel its saturated, I do see a lot of opportunity in Identity, Zero Trust Networks, Catching fake content and such. And more of these features are coming to firewall. Our team is working on how to add default banner to emails, scan and catch emails and there are so many features and request from customers for similar things. I see tremendous growth potential !!
There’s a lot of potential for sure but they’re are even more companies doing that. Every big domain in security kinda has one company dominating/leading and many small time players kinda like they’re being separate companies for compute, vcn, block storage... it makes it very hard to dominate multiple fields In security. Source: relative is svp in top 5 security company
What’s the outlook on the CEO, he’s ex SoftBank right?
He is bullish
Major threat Fortinet our new firewall is the best in the world by data throughput period - We are their main competitor. Others are just Cisco, Juniper, checkpoint and Sophos. And we are growing 50% each quarter. And they are doing better than us now. Most sales are around the world as new networks and VPNs setup due to remote work has exploded our devices use. As paloalto is big in cloud they have great future so do all their competitors. WLB depends upon team, but its ok. But critical bugs can be crunch time. Mobility is hard as most of this is embedded system software so core C/C++ work over top of Linux.
I see. Thanks for your comment. Follow up: 1. Why is the PANW and FTNT underperforming cloud stocks? 2. What's the difference between PANW and FTNT solution. If FTNT has best firewall solution why isn't it leading PANW? 3. Which place do you recommend for HW device work? Congrats on 50% growth QoQ. That's great.
Bcoz stock market is not real economy. Look at the cash these companies have. Profit is around 20%. Look at HACK ETF. And they have done well stock wise, you cannot compare to meme stocks. Its like out of few stocks people do not buy other. People are stupid. Bcoz PANW were leaders and they have better cloud implementation. And we have just recently surpassed their performance only last quarter. HW is slow everywhere as most work is slow and done in shenzen or china 🤷♂️ plus demand for cloud is more, but any position you can get in top 10 cybersecurity companies is good, the pay is not that great but fun to work. If you want to move to hardware security research that is cool and pay will be great. But a very different skillset. Google it. Thanks