Why Palo Alto Networks Stock Popped Powerfully on Monday
Key Points
Some analysts believe the industry, and the company specifically, are generally oversold.
On Monday, it was clear this view was being accepted by investors.
- 10 stocks we like better than Palo Alto Networks ›
Legacy tech companies experienced something of a revival on Monday, and Palo Alto Networks (NASDAQ: PANW) was swept up in the rally. An influential research note from a storied investment bank provided a tailwind to such titles, as did another from an analyst tracking the cybersecurity stock.
Oversold and underappreciated
A major influence on investor sentiment toward such companies was a top-down analysis published by Goldman Sachs on Friday. In that analysis, the bank's Peter Oppenheimer essentially said that the rout had left many sector mainstays oversold, leading to a mismatch between still-robust growth rates and declining valuations.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
This helped ignite the rally many techies experienced on Monday, and alone it probably would have boosted bullishness in Palo Alto stock.
Yet it was assisted by an update from Piper Sandler's Rob Owens Monday morning. In his new note, Owens reiterated his overweight (read: buy) recommendation on the stock, and his $265 per share price target.
Owens's new take followed his company's hosting of a set of investor meetings with Palo Alto's senior vice president of investor relations, Hamza Fodderwala. According to reports, after these events the analyst walked away convinced that the company was not only resistant to artificial intelligence (AI) disruption -- a key factor in the sector's rout -- but also well poised to benefit from AI integration.
A bullish revival
These recent analyses match my own feelings about the hammering that veteran tech stocks have taken lately. Yes, AI is a potentially disruptive technology, but any wise management team is aware of this, and the better ones are taking steps to either head off the threat or embrace the technology to their own advantage.
Owens is correct, I believe, in thinking that Palo Alto can do both. I'd strongly agree that the company's stock has been unfairly punished by Mr. Market, and I'm not surprised to see it reviving now.
Should you buy stock in Palo Alto Networks right now?
Before you buy stock in Palo Alto Networks, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palo Alto Networks wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $555,526!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,156,403!*
Now, it’s worth noting Stock Advisor’s total average return is 968% — a market-crushing outperformance compared to 191% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of April 13, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool recommends Palo Alto Networks. The Motley Fool has a disclosure policy.
Recommended Articles
