Core Insights - The rise of non-human entities on the internet has created a significant demand for identity and access management solutions, leading to increased venture capital investment in startups addressing this issue [1] Company Overview - Venice, a 35-person Israeli-American startup, has emerged from stealth mode with $20 million in Series A funding, aiming to replace established players like CyberArk and Okta in the identity management space [2] - Founded over two years ago, Venice's approach includes tackling both cloud-based and on-premises environments, which positions it favorably for large enterprises with legacy systems [3] Leadership and Team - The company is led by Rotem Lurie, who has a strong background in technology and cybersecurity, including experience at Microsoft and Axis Security [4][5] - Venice's team is notably diverse, with nearly half of its workforce being women, which is uncommon in the tech industry [13][14] Product and Technology - Venice's platform consolidates multiple identity and access management tools into a single system, addressing the complexities of hybrid IT environments [9] - The company operates on a SaaS subscription model, focusing on reducing overhead costs associated with traditional enterprise security deployments [10] Market Position and Growth - Venice claims to be "completely replacing" legacy vendors at Fortune 500 and Fortune 1000 companies, significantly reducing implementation time from months to just a week and a half through AI-powered automation [11] - The identity and access management market is projected to exceed $24 billion in 2025, with a 13% increase from the previous year, indicating a strong demand for innovative solutions [12] Investment and Future Outlook - IVP, the lead investor in Venice's Series A, highlights the urgency created by AI agents as a driving factor for investment, emphasizing the need for modern identity management solutions [12] - The competitive landscape raises questions about whether the market can support multiple successful players or if it will consolidate around a few dominant companies [14]

Core Viewpoint - Barclays believes that the current market panic regarding generative AI (GenAI) is based on a "worst-case scenario" assumption, predicting the extinction of traditional software companies, which mirrors the panic seen a decade ago with the rise of Amazon AWS [1][2] Historical Context - The current investor sentiment in the software sector is extremely negative, with a simplistic investment logic of buying AI newcomers and shorting traditional software [2] - This situation is reminiscent of the panic surrounding AWS's growth, where established software companies faced similar doomsday predictions, yet none went bankrupt due to AWS competition [4][5] Market Dynamics - Historical data shows that while AWS gained significant market share, it did not lead to the extinction of mature software companies; instead, these companies evolved and thrived [4][5] - The market's current indiscriminate sell-off of software stocks, with the IGV (software ETF) down approximately 24% year-to-date, is viewed as irrational [6] Mispricing Opportunities - Barclays identifies significant mispricing opportunities in the current market, particularly for companies with strong core record systems and specific domain moats that are being undervalued [1][6] - The panic selling creates an opportunity for investors to identify industry leaders that have been unfairly punished [7] Defensive Sectors - Two defensive sectors highlighted are: 1. Owners of record systems, such as Salesforce and SAP, which hold core enterprise data and are difficult to replace [9] 2. Vertical SaaS companies, like Veeva Systems and Tyler Technologies, which possess deep domain-specific data moats [9] Company Performance - Notable company performances include: - CyberArk's market cap surged from $885 million to $22.516 billion, a 2443% increase [8] - Microsoft and Google also saw significant market cap growth, with increases of 1048% and 871%, respectively [8] - Traditional companies like Teradata experienced a 73% decline, while others like Tableau and Splunk were acquired at high premiums [8]

Group 1 - CyberArk Software Ltd. (NASDAQ:CYBR) is recognized as a high growth international stock, with recent price target increases from DA Davidson and Jefferies maintaining a Buy rating [1][2] - The company reported record fiscal Q4 2025 results, achieving $372.65 million in revenue, which is an 18.53% year-over-year increase and $9.71 million above consensus estimates [2] - Earnings per share (EPS) for the quarter was $1.33, exceeding market expectations by $0.18, attributed to broad-based strength across its business [2][4] Group 2 - CyberArk achieved a record net new Annual Recurring Revenue (ARR) of $99 million, reflecting a 20% year-over-year increase, indicating strong customer prioritization of identity security [4] - The company's focus is on providing identity security solutions, particularly in privileged access management (PAM), to protect organizations from cyberattacks targeting high-privilege accounts [4]

Palo Alto Networks has finalised its previously announced $25bn worth acquisition of CyberArk, a move intended to incorporate identity security into its core platform strategy. The transaction, originally announced in July 2025, entitles CyberArk shareholders to receive $45 in cash and 2.2005 shares of Palo Alto Networks common stock for each CyberArk ordinary share. CyberArk was listed on Nasdaq prior to the closing of the deal. With this deal, Palo Alto Networks aims to address the increasing need for ...

Core Viewpoint - The Tel Aviv Stock Exchange (TASE) has successfully attracted Palo Alto Networks, the largest cybersecurity company globally, to dual-list on the TASE, marking a significant shift in the exchange's appeal to major tech firms [1][3]. Company Overview - Palo Alto Networks is currently traded on Nasdaq with a market capitalization of $115 billion and has extensive operations in Israel, being founded by Israeli entrepreneur Nir Zuk [2]. - The acquisition of CyberArk, valued at approximately $21 billion, will primarily be conducted through shares, which is expected to increase Palo Alto's market cap further [3]. Market Impact - Upon its listing, Palo Alto will have a valuation exceeding NIS 350 billion, making it the largest company on the TASE, significantly surpassing the current largest company, Teva Pharmaceuticals, which has a market cap of about NIS 125 billion [3][4]. - The TASE's market cap increased by 10% following the announcement, reflecting a substantial rise of over eightfold in the last three years, with the current market cap at NIS 13 billion [8]. Industry Significance - Palo Alto's dual-listing is expected to enhance liquidity and attract international interest in the Israeli market, reinforcing Israel's status as a global cybersecurity hub [6]. - The move may encourage other Israeli or Israel-connected companies listed only on Wall Street to consider dual-listing on the TASE, potentially increasing their visibility and demand [10]. Employment and Operations - CyberArk, which was acquired by Palo Alto, had nearly 4,000 employees, including about 1,000 in Israel, while Palo Alto had over 16,000 employees, with nearly 1,500 in Israel [12][13]. - The acquisition is noted as the second largest in the Israeli cybersecurity sector, following Google's acquisition of Wiz for $32 billion [12].

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens to improve investment confidence [1] Zacks Style Scores - Zacks Style Scores are indicators that help investors select stocks likely to outperform the market in the next 30 days, rated from A to F based on value, growth, and momentum characteristics [2] - The Value Score identifies attractive stocks using ratios like P/E and Price/Sales, focusing on stocks that are undervalued [3] - The Growth Score evaluates a company's future prospects through earnings, sales, and cash flow to find stocks with sustainable growth [4] - The Momentum Score leverages trends in stock prices and earnings estimates to identify favorable times for investment [5] - The VGM Score combines the three Style Scores to highlight stocks with the best value, growth, and momentum characteristics [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to assist investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.83% since 1988, significantly outperforming the S&P 500 [8] - Investors can choose from over 800 top-rated stocks, and the Style Scores help narrow down selections [9] Investment Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with lower ranks (3, 4, 5) should still have strong Style Scores to maximize upside potential [11] Company Spotlight: CyberArk - CyberArk Software Ltd. is a key player in IT security, serving over 5,400 global businesses, including more than 50% of Fortune 500 companies [12] - CyberArk holds a Zacks Rank of 2 (Buy) and a VGM Score of B, making it a strong candidate for growth investors [12] - The company forecasts a year-over-year earnings growth of 10.9% for the current fiscal year, with upward revisions in earnings estimates [13] - CyberArk has an average earnings surprise of +20.9%, indicating strong performance potential [13]

Core Viewpoint - CyberArk (CYBR) has experienced a significant downtrend, with a 17.2% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to analysts' positive earnings outlook [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a momentum oscillator that indicates whether a stock is oversold, with readings below 30 typically signaling this condition [2]. - CYBR's current RSI reading of 19.5 suggests that the heavy selling pressure may be exhausting, indicating a possible bounce back towards equilibrium [5]. Group 2: Fundamental Analysis - Analysts have shown strong consensus in raising CYBR's earnings estimates, with a 4.9% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7]. - CYBR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the stock's potential for a near-term turnaround [8].

Core Viewpoint - DA Davidson has adopted a more optimistic outlook on CyberArk Software Ltd following a strong quarterly performance driven by subscription growth and increasing recurring revenue [1]. Group 1: Financial Performance - CyberArk reported revenue of $372.7 million and adjusted EPS of $1.33, slightly below profit expectations but supported by robust subscription growth [3]. - Subscription revenue increased by 28% year-over-year to $310.5 million, accounting for 83% of total revenue, while recurring revenue reached 96% of the total [3]. - Total Annual Recurring Revenue (ARR) rose by 23% to $1.44 billion, with subscription ARR growing approximately 29% organically [4]. Group 2: Market Position and Analyst Insights - Analyst Rudy Kessinger maintained a Buy rating on CyberArk and raised the price target from $518 to $573, aligning the stock's valuation with that of Palo Alto Networks Inc [1][2]. - Despite some uncertainty regarding a pending acquisition by Palo Alto Networks, Kessinger revised forward estimates, projecting first-quarter revenue of $378.6 million and EPS of $1.35 [5]. - Operating margins were slightly lower than expected due to increased costs, but free cash flow exceeded forecasts [4].

Core Insights - CyberArk reported revenue of $372.65 million for the quarter ended December 2025, marking an 18.5% year-over-year increase and a 4.7% surprise over the Zacks Consensus Estimate of $355.91 million [1] - The company achieved an EPS of $1.33, which is a significant increase from $0.80 a year ago, resulting in an EPS surprise of 18.12% compared to the consensus estimate of $1.13 [1] Financial Performance Metrics - Total Annual Recurring Revenue (ARR) reached $1.44 billion, slightly above the average estimate of $1.43 billion from three analysts [4] - Maintenance ARR was reported at $173 million, below the average estimate of $178.25 million from three analysts, reflecting a decline [4] - Subscription ARR totaled $1.27 billion, exceeding the average estimate of $1.25 billion from three analysts [4] - Subscription revenues were $310.52 million, surpassing the estimated $296.84 million by five analysts, representing a 27.8% increase year-over-year [4] - Revenues from maintenance and professional services were $62.13 million, above the estimated $57.76 million by five analysts, but this reflects a 6.4% decrease compared to the year-ago quarter [4] Stock Performance - CyberArk's shares have returned -9.6% over the past month, contrasting with the Zacks S&P 500 composite's +0.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - CyberArk (CYBR) reported quarterly earnings of $1.33 per share, exceeding the Zacks Consensus Estimate of $1.13 per share, and showing an increase from $0.8 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was +18.12%, with the company having surpassed consensus EPS estimates in all four of the last quarters [2] - CyberArk's revenues for the quarter reached $372.65 million, surpassing the Zacks Consensus Estimate by 4.70%, and up from $314.38 million year-over-year [3] Stock Performance - CyberArk shares have declined approximately 8.8% since the beginning of the year, while the S&P 500 has gained 1.1% [4] - The current Zacks Rank for CyberArk is 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $1.01 on revenues of $372.28 million, and for the current fiscal year, it is $4.85 on revenues of $1.6 billion [8] - The outlook for the security industry, where CyberArk operates, is currently in the bottom 28% of Zacks industries, which may impact stock performance [9]