We are buying 25 shares of Palo Alto Networks at roughly $266.16. Following the trade, Jim Cramer's Charitable Trust will own 300 shares of PANW, increasing its weighting to 2.5% from 2.28%. The stock of this cybersecurity leader is down about 10% from our last buy in February, and we view this as a solid next level to buy more. It's a good example of how to buy using wide scales when a stock's momentum is going the other way.
While it comes with some freebies and new promotions that will slow its revenue and billings growth rates for the next 18 months or so, it should lead to significant market share gains, larger deals, and longer-duration contracts. In addition, Arora clarified his comment about spending fatigue, explaining that the challenge customers are facing is how to get the most value in cybersecurity in an increasingly elevated threat environment.