Palo Alto Networks' Latest Acquisition Fulfills an Important Industry Need
You may not be able to tell from the current state of stocks in the tech sector, but make no mistake: Software and computing technology is crossing lines and proliferating all corners of the economy. Cloud computing (an app accessed from a remote location via an internet connection) is a total game changer. It helps organizations "do more with less," a critical need in this inflationary environment -- and a need that will continue to receive plenty of attention even if there's a recession in 2023.
However, this explosion in the number of apps used by nontech companies presents new security challenges. That's why leading cybersecurity company Palo Alto Networks (NASDAQ: PANW) went on the mergers and acquisitions (M&A) hunt again and recently closed a deal for an app security (AppSec) start-up. Here's why that's so important, and why Palo Alto Networks stock is a top buy in my book.
After a multiyear spending spree on cybersecurity start-ups from late 2018 to early 2021, CEO Nikesh Arora has come out of acquisition hibernation to purchase Cider Security. The total price tag was $195 million, plus the cost to replace stock-based compensation for Cider employees.
Source Fool.com
