Investing in Cybersecurity Stocks: A Look at Palo Alto Networks, Fortinet, and SentinelOne

[@gvv1mhh]

You guys are awesome. Thank you for the analysis. I’m watching this 9 months after you put this out and boy were you right. Thanks again.

[@markom001]

Heck yeah, I love the cybersec coverage! Thank you so much guys🙌

[@krishnav9987]

Great analysis and great picks!

[@Carol-cb9yu]

Gezz..."tune in next week"...a hook! Nice in-depth coverage of the sector, thanks.

[@NavaAndNeki]

favorite kind of podcast on 1.5x

[@cacurazi]

Great content!

[@Matt-uy5tw]

Fantastic coverage guys on a soon to be massive sector, with very little coverage elsewhere.

[@chipstockinvestor]

Thanks Matt!

[@SwaringeUkluk]

Thanks for the valuable analysis

[@ckalfack]

Again another great video and topic from you, Kasey & Nick. Love your videos and content 😍 Keep up the great work and #HappyWeekend 🙂☀️

[@fabiantorres8403]

Thanks a lot for the video! As always very valuable information. Definitely two outstanding cybersecurity companies.

[@chipstockinvestor]

Thanks as always Fabian!

[@Porformer]

Hey, nice compilation. I have dropped the German provider SECUNET from my portfolio and am now hesitating between Crowdstrike and Fortinet. Palo Alto seems to bit too expensive for me.

[@chipstockinvestor]

Hi there @Porformer, did you see our latest video on cybersecurity? We address this question exactly. kzbin.info/www/bejne/bJW2oWtsnKmpg7s

[@heyjianjing]

7:30, Nick you mentioned an infographic by PANW, could you provide a link? Thank you!

[@chipstockinvestor]

Yes, PANW provides this chart every quarter in their slide presentation. Here's the link, see pg. 19. For the hardware sales, see pg 21 (product revenue). investors.paloaltonetworks.com/static-files/70379c02-346b-493b-81c0-69ef1498b730

[@heyjianjing]

@@chipstockinvestor Thank you very much, I am newbie in this field and am trying to get a clear picture of the stories of these companies!

[@chipstockinvestor]

@@heyjianjing hope we can be of help!

[@andycorley223]

Thank you so much, very informative.

[@chipstockinvestor]

Thanks for watching Andy!

[@no-one9987]

This is top notch video... Thanks

[@chipstockinvestor]

Thank you for watching!

[@markflour]

Wow! Thanks for the detailed data and analysis!

[@chipstockinvestor]

You're welcome Mark!

[@gvv1mhh]

Liked and Subscribed ❤

[@chipstockinvestor]

Thank you, we appreciate it! And welcome!

[@EllyMoody]

Are HACK and cybersecurity etf's future to dip from the expensive price? Or should we join at the top?

[@heyjianjing]

Fantastic coverage, got me really interested to learn this field! I wonder whether Google has its place, I have been seeing their ads talking about cybersecurity a lot. (Maybe it's already a giant so it is not covered here, like Microsoft)

[@chipstockinvestor]

They do a lot of security! They recently acquired Mandiant (formerly FireEye). Google Cloud is growing fast and now profitable too.

[@johnrogers9065]

This is a rather vague question, but...is there a major difference in the quality of cybersecurity between FTNT, CRWD, and PANW?

[@chipstockinvestor]

Great question John, we'd need a whole video to explain. There's overlap between these companies, but they also have some things they each do best. CRWD is mostly endpoint security. Fortinet has some of the best hardware/firewalls. PANW has been recognized as the top player in SASE (secure access service edge).

[@johnrogers9065]

@@chipstockinvestor Very helpful! Thank you!

[@ShaikhAfroz]

We should not ignore that Sentinal one is growing very fast and when you try to grow, you spend a lot of money in areas which can be cutdown on a later stage, Sentinal One is still a bit new player in the market and 3rd leading product in the market, just after Microsoft, CrowdStrike and then Sentinal one, I think they can turn things around in a long term, maybe next year when the economy is looking a bit better. I am counting on the Sentinal one team to recover and grow throughout 2023 - 2026 heavily.

[@chipstockinvestor]

Hey Shaikh, thanks for commenting! We agree, SentinelOne could be an interesting "rebound" play. But there are tough dynamics in the cybersecurity market that give us pause. Expenses can eventually be cut, to a certain point, but it requires large scale first. We have seen a number of cybersecurity darlings quickly flame out due to these scale challenges (R&D is almost a type of fixed cost in this industry, and sales and marketing is a never ending game). SenintelOne has a tough road ahead of it, so invest accordingly.

[@RVMKrishna]

Nick and Kasey, Do you have a portfolio you maintain and track? It would be super helpful if you can share it.

[@chipstockinvestor]

We do not publish our portfolio at this time, but are thinking how we might do so in the future

[@andreinedelcu5330]

Thank you for the overview, very informative as always. It's a dynamic sector, hard to pick winners, agree. Do you also buy cybersecurity ETFs like WCBR, BUG, IHAK to hedge the bets inside the segment, or not a fan of their expense ratio and just rebalance periodically according to bespoke metrics?

[@chipstockinvestor]

We like making our own basket. Have found the ETFs in this space lag behind just owning the top 3-5 leaders.

[@kyleheller2924]

Any reason why no ZS? Absolute leaders in Zero trust, doesn’t directly compete with crowd strike (endpoint), and hasn’t been pushed by AWS/GCP/Azure yet.

[@chipstockinvestor]

Great question. I've written extensively on Zscaler, and could do a video update on it alongside PANW and FTNT. Main issue we have is slowing growth and simultaneously rising stock-based compensation. Resulting free cash flow per share growth hasn't been able to keep up with the valuation. But that might be changing this year.

[@svennickl5758]

Thanks 😊

[@chipstockinvestor]

You're welcome!

[@svennickl5758]

@@chipstockinvestor I think you have a very rational approach and a deep understanding of the semiconductor market. Long story short I'm a fan 💯

[@chipstockinvestor]

@@svennickl5758 thank you, glad you find our approach helpful! And how we can keep providing usable info!

[@cocoarecords]

🎉

[@townhome-p9j]

I can’t find the tip button.

[@chipstockinvestor]

I think you have found this already 😉 , and we thank you so much for your support! But if anyone else is looking for it, here its is 👉 ko-fi.com/chipstockinvestor

[@PierreGerraddio]

Man you gave me PTSD when you mentioned FireEye lol

[@chipstockinvestor]

Ha! Funny! But not really funny! That one was really messed up

[@PierreGerraddio]

@@chipstockinvestor that was the first stock I ever bought.

[@chipstockinvestor]

@@PierreGerraddio oof sorry to hear that! Painful learning experience!

[@3dhunting]

I’m still a fan of S

[@chipstockinvestor]

We haven't given up on it, but this last report was really not good.

[@missunique65]

too many mid roll ads- please cool it

[@daniellahootian6487]

TNX for info. I own some Fortinet and crowedstrike. PaloAlto to expensiv to buy.