Invest in an Effortless Stock Divide Shares with a $200 Investment, Maintain for Extended Period
Good companies often create substantial value over the long term, making their stock price skyrocket to hundreds or even thousands of dollars. However, this can be challenging for retail investors without access to fractional shares through a brokerage service. A potential solution to this problem is a stock split, which increases the number of shares and decreases their price per share, making stocks more accessible to small investors.
Recently, Palo Alto Networks, the world's largest cybersecurity company, executed a 2-for-1 split, doubling their shares in circulation and halving the stock price. This move shows the company's commitment to creating value for shareholders and making its stock more attainable to smaller investors.
Palo Alto Networks is preparing its customers for a future dominated by artificial intelligence (AI), which could drive a new wave of value for the company. With the growing portfolio of AI cybersecurity products, Palo Alto is fighting the increasing use of AI for malicious purposes by integrating AI into as many of its products as possible. The company is focusing on automation to reduce the burden on human managers in security operations centers and improve threat detection and response times.
Palo Alto is also working to protect organizations using AI in their operations, as they create a new attack surface requiring advanced protection. To address this issue, Palo Alto launched AI Access Security, which already has over 300 paying customers. The platform secures critical data and identifies threats when organizations are using third-party models, and already offers coverage for 1,800 different AI apps.
The strong revenue growth at Palo Alto is driven by platformization, which involves convincing customers to use its products for all their cybersecurity needs. This strategy is going to drive significant long-term value for Palo Alto as customers become locked into the platform, accumulating more spending and reducing the likelihood of migration to a competitor.
Overall, Palo Alto stock is a long-term buy, despite its current premium to its five-year average price-to-sales ratio. The company's goal to triple its platformed customers by 2030, potentially translating into $15 billion in NGS ARR, positions it for further growth in the cybersecurity market, which is expected to reach $377.9 billion in five years.
In conclusion, Palo Alto Networks' use of AI in cybersecurity products has led to significant revenue growth, maintained market confidence, and positioned the company well for continued success in the cybersecurity sector. With the company's focus on automation, advanced protection, and platformization, investors with a spare $200 should consider adding Palo Alto Networks stock to their portfolio.
- Retail investors, who are interested in investing in Palo Alto Networks' stock but may not have enough money for a full share, can benefit from the recent 2-for-1 stock split, as it has made the stock more affordable.
- To further increase its accessibility, Palo Alto Networks is also considering adopting a system of fractional shares, allowing investors to buy parts of a single share.
- With the growing use of artificial intelligence in various sectors, cybersecurity has become more crucial than ever, and Palo Alto Networks' focus on AI in its products has helped it maintain a competitive edge.
- Recognizing the potential risk of cybersecurity threats in AI operations, Palo Alto Networks has developed AI Access Security, an advanced platform that offers protection for critical data and threat identification in third-party models, contributing to the company's revenue growth.
