Key insights
- Gradient Investments highlights Palo Alto Networks (PANW) as a strong player in the cybersecurity sector despite broader software industry headwinds. Security remains a high priority for IT spending, positioning PANW favorably. The emergence of AI tools like Claude Mythos, while potentially disruptive, also underscores the ongoing need for robust enterprise-level security solutions, suggesting a buying opportunity for PANW.
Gradient Investments senior portfolio manager Keith Gangl explains why Palo Alto Networks (PANW) is one of the few software (IGV) names that's set up for success.
Let's go back to software because I want to talk to you about Palo Alto Networks PANW here. Uh, we were just talking about this earlier on the show, but Claude Mythos, this is a product that Anthropic did not release because it's so good at finding bugs in software.
It's finding bugs in software that's been around for 25 years. Palo Alto in the cybersecurity market put this together for us.
Yeah, it's certainly hitting the space. Like I said, I think software in general is getting, you know, it's the baby in the bathwater situation. I think there's definitely going to be companies that are impacted.
Now, security is is interesting, right? You you've seen this mythos kind of getting released here or potentially getting released that's finding bugs that haven't been found before.
And certainly that is kind of poking some holes in some of these security software names. But I I take a step back and I think this is an opportunity to buy a high-quality name that's on on sale compared to where it normally trades at.
Security, you know, if you're looking at, you're talking to an IT kind of head of IT department, in their spend, security software spend is still a high priority to them.
So they're going to have to prioritize who they want to spend with. And yeah, sure, maybe Claude can replace some of this, but as a big enterprise, a company, you still need to spend. I think Palo Alto is a winner there.