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Here's How Much a $1000 Investment in Palo Alto Networks Made 10 Years Ago Would Be Worth Today
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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.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Palo Alto Networks (PANW - Free Report) 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
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Palo Alto Networks ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in June 2013 would be worth $17,152.30, or a gain of 1,615.23%, as of June 19, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 171.07% and gold's return of 39.08% over the same time frame.
Analysts are forecasting more upside for PANW too.
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. Our estimates suggests that Palo Alto’s revenues will grow at a CAGR of 21.1% through fiscal 2023-2025. 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 have gained 30.67% over the past four weeks and there have been 15 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Palo Alto Networks Made 10 Years Ago Would Be Worth Today
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.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Palo Alto Networks (PANW - Free Report) 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
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Palo Alto Networks ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in June 2013 would be worth $17,152.30, or a gain of 1,615.23%, as of June 19, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 171.07% and gold's return of 39.08% over the same time frame.
Analysts are forecasting more upside for PANW too.
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. Our estimates suggests that Palo Alto’s revenues will grow at a CAGR of 21.1% through fiscal 2023-2025. 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 have gained 30.67% over the past four weeks and there have been 15 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.