Palo Alto's Platform Approach Is Locking Customers Into Its Ecosystem for Broad Security Needs

We view Palo Alto Networks as a leader in multiple cybersecurity sub-segments, including network security, cloud security, and security operations. We believe the firm stands to materially benefit from secular tailwinds across its three key verticals as cloud migrations shift to zero-trust security, and increased automation in cybersecurity increases Palo Alto’s value proposition to its clients. In our view, the firm’s sticky platforms, combined with a broad range of cybersecurity applications have helped Palo Alto build a wide economic moat around its business.