Core Insights - Palo Alto Networks is a leading cybersecurity company known for its innovative security solutions, including firewalls, cloud security, and threat intelligence [1] - The company is set to release its quarterly earnings on November 19, 2025, with Wall Street analysts estimating an EPS of $0.89 and revenue of $2.46 billion [2][6] - The stock price has recently declined from a high of $223 in October to $205, raising investor interest in the upcoming financial results [2] Financial Performance - In the previous quarter, Palo Alto Networks reported $2.5 billion in revenue, reflecting a 16% year-over-year increase, driven by a shift from hardware to subscription and service-based offerings [3][6] - The company's backlog grew to $15.8 billion, and annual recurring revenue for next-generation security surged by 32% to $5.6 billion [3] Market Dynamics - Investors are particularly focused on the progress in subscription and recurring revenue offerings in the upcoming earnings report [4] - Commentary on competitive pressures, especially in identity security and secure access service edge (SASE), will be of interest due to increasing competition from rivals [4] Institutional Investor Activity - Institutional investors have been adjusting their positions in Palo Alto Networks, with Banco Bilbao Vizcaya Argentaria S.A. reducing its holdings by 0.5% [5] - Connor Clark and Lunn Investment Management Ltd. acquired a new stake valued at $261,000, while Strive Asset Management LLC increased its stake by 16.6%, now holding shares valued at $358,000 [5][6]

Core Viewpoint - Palo Alto Networks, Inc. (NASDAQ:PANW) is recognized as a significant player in the AI stock market, with a "Buy" rating maintained by TD Cowen and a price target raised to $255.00 ahead of its earnings report on November 19 [1]. Group 1: Growth Potential - TD Cowen highlights PANW's strong growth potential attributed to successful platformization efforts and the rapid adoption of its AI solutions, particularly in critical sectors such as banking, energy, and transportation [2]. - The ongoing firewall refresh cycle is expected to support the growth of PANW's Next-Generation Security Annual Recurring Revenue [3]. Group 2: Strategic Developments - The anticipated completion of PANW's acquisition of CYBR is viewed as a positive factor, likely enhancing the company's platform capabilities in identity security [3].

Core Insights - Nikesh Arora, Chairman and CEO of Palo Alto Networks, received the John J. McCloy Award for his contributions to strengthening digital security in Europe during the AI transformation era [1][2][3]. Company Recognition - The award was presented at the 32nd McCloy Awards Dinner in New York, where Arora was recognized for building digital resilience across the Atlantic [2]. - Tim Höttges, CEO of Deutsche Telekom, and Ambassador Kristen Silverberg were also honored for their contributions to transatlantic relations [2]. Leadership and Vision - Arora emphasized the importance of aligning as a global community in policy, technology, and principle to enhance security and trust in the digital age [3]. - The John J. McCloy Award is a prestigious recognition in the German-American business community, celebrating leaders with cross-border influence [3][4]. Event Details - The McCloy Awards Dinner gathered approximately 300 high-ranking guests from business, politics, and civil society to honor the German-American partnership [5]. Company Overview - Palo Alto Networks is recognized as a global leader in AI and cybersecurity, providing comprehensive security solutions to over 70,000 organizations worldwide [6]. - The company focuses on continuous innovation and platformization to streamline security and fuel enterprise growth [6].

It's time for the big three. We've got three stocks, three charts, and three trades. Rick Dat will take us through the charts as always. Here to take us through the trades today is Scott Bower. Scott, great to have you with us today.Thanks for being with us on this Monday morning. If we could start with a big picture thought on on market performance recently. I'd love to get your take on this choppiness that we've been seeing.>> Yeah, choppiness, obviously, a little bit of nervousness. You know, I was looki ...

Core Viewpoint - Palo Alto Networks' stock price has recently declined from a year-to-date high of $223 in October to the current price of $205, indicating a notable pullback in the stock's performance [1] Group 1 - The stock price movement highlights a decrease of approximately 8.06% from the peak [1] - Palo Alto Networks is expected to be in the spotlight this week due to upcoming events or announcements that may impact its stock performance [1]

Group 1: Zscaler, Inc. - Zscaler is expected to report quarterly earnings of 86 cents per share, an increase from 77 cents per share in the same period last year [1] - The company anticipates quarterly earnings of $773.86 million, up from $627.96 million a year ago [1] - Analysts at Wedbush have raised their price target for Zscaler to $350, highlighting its position as a major beneficiary of the AI security boom [2] Group 2: Raymond James Financial, Inc. - Raymond James Financial reported better-than-expected earnings for the fourth quarter, with earnings of $3.11 per share, surpassing the analyst consensus estimate of $2.82 per share [3] - The company also reported quarterly sales of $3.727 billion, exceeding the analyst consensus estimate of $3.625 billion [3] - Raymond James Financial shares fell 1.5% to close at $158.73 [6] Group 3: Palo Alto Networks, Inc. - Analysts, including Evercore ISI Group, Morgan Stanley, UBS, and TD Cowen, have raised their price targets on Palo Alto Networks [4] - Palo Alto Networks shares rose 0.2% to settle at $205.25 [6]

Earnings Reports - This week features earnings reports from major companies including Nvidia (NVDA), Home Depot (HD), Walmart (WMT), Target (TGT), Lowes (LOW), Palo Alto Networks (PANW), Medtronic (MDT), and PDD Holdings (PDD) [1] Implied Volatility - Implied volatility tends to be high before earnings announcements due to market uncertainty, leading to increased demand for options [2] - After earnings announcements, implied volatility typically decreases back to normal levels [3] Expected Price Movements - The expected price range for stocks can be estimated by summing the prices of at-the-money put and call options, using the first expiry date after the earnings date [3] - Specific expected price movements for the week include: - TCOM – 6.2% - HD – 4.4% - PDD – 6.7% - MDT – 3.8% - BIDU – 7.8% - NVDA – 7.7% - PANW – 7.6% - LOW – 5.1% - TGT – 9.9% - WMT – 5.1% [4] Trading Strategies - Option traders can utilize expected moves to structure trades, with bearish traders selling bear call spreads and bullish traders selling bull put spreads or looking at naked puts [5] - Neutral traders may consider iron condors, ensuring short strikes remain outside the expected range [5] - It is advisable to use risk-defined strategies and maintain small position sizes when trading options over earnings [6] High Implied Volatility Stocks - A stock screener can identify stocks with high implied volatility, using filters such as total call volume greater than 5,000, market cap greater than 40 billion, and IV rank greater than 50% [7]

Core Viewpoint - Palo Alto Networks is set to report its first fiscal quarter results on November 19, with analysts expecting revenue of $2.46 billion, a 15.1% increase year-over-year, and earnings per share of $0.89, a 14.1% increase from the previous year [1] Group 1: Financial Performance - In the previous quarter, Palo Alto Networks reported a revenue of $2.54 billion, a 16% year-over-year increase, exceeding market expectations of $2.5 billion [1] - Product revenue reached $573.9 million, a 19% increase year-over-year, while subscription and support services revenue was $1.96 billion, up 15% [1] - The annual recurring revenue (ARR) for next-generation security solutions reached $5.6 billion, surpassing analyst expectations of $5.55 billion [1] Group 2: Analyst Ratings and Expectations - Analyst Dan Ives from Wedbush Securities praised the company's performance, affirming that CEO Nikesh Arora's platform strategy has gained customer recognition, giving Palo Alto a "outperform" rating with a target price of $225 [1] - The average market expectation for the first fiscal quarter's earnings per share has remained unchanged over the past 30 days [1] - Analysts predict product revenue could reach $423.19 million, a 19.6% increase year-over-year, and subscription and support services revenue is expected to be $2.04 billion, a 14.2% increase [1] Group 3: Profit Margins - Analysts expect the Non-GAAP product gross profit to be $333.92 million, up from $282 million in the same period last year [2] - The Non-GAAP subscription and support services gross profit is anticipated to reach $1.56 billion, compared to $1.37 billion in the previous year [2] - The GAAP subscription and support services gross profit is projected at $1.51 billion, up from $1.31 billion last year, while GAAP product gross profit is expected to be $333.26 million, an increase from $278.8 million [2]

Core Viewpoint - Palo Alto Networks is set to release its Q1 financial report on November 19, with analysts expecting revenue of $2.46 billion, a 15.1% increase year-over-year, and earnings per share of $0.89, a 14.1% increase [1] Group 1: Financial Performance - In the previous quarter, Palo Alto Networks reported a revenue of $2.54 billion, a 16% year-over-year increase, exceeding market expectations of $2.5 billion [1] - Product revenue reached $573.9 million, a 19% increase year-over-year, while subscription and support services revenue was $1.96 billion, a 15% increase [1] - The annual recurring revenue (ARR) for next-generation security solutions reached $5.6 billion, surpassing analyst expectations of $5.55 billion [1] Group 2: Analyst Expectations - Analysts expect "Non-GAAP product gross profit" to reach $333.92 million, up from $282 million in the same period last year [2] - The anticipated "Non-GAAP subscription and support services gross profit" is projected at $1.56 billion, compared to $1.37 billion last year [2] - The expected "GAAP subscription and support services gross profit" is $1.51 billion, up from $1.31 billion last year, while "GAAP product gross profit" is expected to be $333.26 million, compared to $278.8 million last year [2] Group 3: Market Sentiment - Analyst Dan Ives from Wedbush Securities noted that the recent performance validates CEO Nikesh Arora's platform strategy, giving Palo Alto a "outperform" rating with a target price of $225 [1] - The average market expectation for Q1 earnings per share has remained unchanged over the past 30 days, indicating stable analyst sentiment [1] - Analysts project specific revenue metrics, including product revenue of $423.19 million (up 19.6% year-over-year) and subscription and support services revenue of $2.04 billion (up 14.2% year-over-year) [1]

We got to do final trades. I turn to Brian Bellski. >> Scott, we're going >> humble humilous.>> Yes. >> Capital management. >> Thank you. Thank you.We're going with Raymond James Financial. One of the last standalone brokerage firms. It's a wonderful shop with both a broker dealer and an asset management business.>> I'm going Zcaler. It's been falling this week, but earnings are in a couple of weeks. I expect them to be strong.Link sir. >> Paloalto. ...