VC Firms and Tech Startups Face Growing Pressure for Liquidity. Enter Private Equity
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 13 2024
0mins
Should l Buy PANW?
Source: WSJ
Venture Capital Challenges: The venture capital process is facing pressure as investors seek returns from VC firms and startups amid a recovering IPO market, which remains below normal levels despite some improvement in 2024.
IPO Market Status: Although IPO activity has increased in 2024 compared to the previous year, it is still hindered by ongoing economic concerns, according to a report from the law firm Ropes & Gray.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy PANW?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on PANW
Wall Street analysts forecast PANW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PANW is 232.49 USD with a low forecast of 157.00 USD and a high forecast of 265.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
28 Buy
5 Hold
1 Sell
Strong Buy
Current: 159.320
Low
157.00
Averages
232.49
High
265.00
Current: 159.320
Low
157.00
Averages
232.49
High
265.00
About PANW
Palo Alto Networks, Inc. provides comprehensive artificial intelligence (AI)-powered security solutions across network, cloud, security operations and AI. The Company focuses on four areas: Network Security, Cloud Security, Security Operations and Threat Intelligence and Advisory Services (Unit 42). Its network security platform comprises ML-powered firewalls, AI Runtime Security, and a Secure Access Service Edge (SASE) framework, which includes Prisma Access, Prisma SD-WAN, and Prisma Access Browser to secure remote workforces and branch offices. Its Cloud security is delivered via Prisma Cloud, a Code to Cloud platform that protects applications, data, GenAI environments, and the cloud-native stack throughout the development lifecycle. Its Unit 42 division provides intelligence-led consulting, incident response, managed detection and response, and threat hunting services. Its Prisma AIRS is an AI security platform which secures applications, agents, models and data.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Massive Funding Round: Databricks has successfully raised $7 billion, achieving a valuation of $134 billion, which not only reflects market confidence in its future growth but also solidifies the groundwork for its upcoming IPO.
- AI-Driven Database Development: Currently, 80% of the databases on the Databricks platform are built by AI agents, indicating a rapid adoption of AI in software development, particularly among large enterprises, which could reshape the competitive landscape of the industry.
- Extensive Customer Base: Databricks now boasts over 20,000 customers across various sectors, demonstrating strong market demand for its products and providing robust support for the company's future growth.
- Significant Industry Impact: As AI agents increasingly play a role in software construction, CEO Ali Ghodsi emphasizes that this will have profound implications for the entire software industry, prompting companies to rethink how AI can transform traditional development models.
See More
- Market Performance Analysis: Cybersecurity ETFs have declined between 3% and 24% over the past year, while the overall market has risen 14%, indicating that investment interest in the cybersecurity sector remains strong.
- SentinelOne Growth Potential: With a trailing revenue growth rate of 24%, SentinelOne is the fastest-growing company in this space, and despite a market cap of $4.5 billion, its enterprise value is only $3.9 billion, suggesting a relatively low valuation that could make it a potential acquisition target.
- CrowdStrike Market Recovery: CrowdStrike has achieved a year-over-year revenue growth rate of 22%, and despite the negative impact of a technical outage, its stock price has risen 50% since that incident, reflecting strong market confidence in its products.
- Palo Alto Networks Stability: Palo Alto Networks has a trailing revenue growth rate of 15%, which is slower than its peers, but with a market cap of $111 billion and consistent profitability, it demonstrates its leadership position and investment value in the cybersecurity sector.
See More
- Acquisition Agreement: Reliance Global Group announced a definitive agreement to acquire a 51% controlling interest in Enquantum for $2.125 million, with the deal expected to close within 30 days, highlighting the company's commitment to security solutions in the quantum computing era.
- Financial Terms Details: The acquisition will be paid in installments, starting with an 8% fully diluted ownership through a $166,000 secured bridge note and cash issuance, with additional monthly issuances increasing ownership to 48% before reaching 51%, reflecting Reliance's long-term investment confidence in Enquantum.
- Strategic Technology Support: This acquisition positions Enquantum as the first operating platform under Reliance's newly launched Scale51 strategy, indicating the company's technological focus in post-quantum cryptography aimed at enhancing competitiveness in high-throughput network environments.
- Positive Market Reaction: Following the acquisition announcement, Reliance Global Group shares rose 8.02% to $0.17 in premarket trading, demonstrating market optimism regarding the company's future growth potential.
See More
- Infrastructure Demand Surge: Fluor is expected to see a nearly 4% revenue decline in 2024, yet the urgency of infrastructure projects makes investing in FLR stock appealing, particularly as the demand for nuclear facility construction is set to triple by 2050 in the U.S.
- Cybersecurity Market Expansion: Palo Alto Networks reported a record 3,322 data breaches in 2022, a 79% increase from 2020, highlighting strong demand for its cybersecurity services, with projected revenue growth of 14% this year and 13% next year, indicating sustained market leadership.
- IBM's AI Transformation: IBM achieved a 12% year-over-year revenue growth last quarter, primarily driven by sales of AI-capable mainframes and software, particularly strong in automation and data management, showcasing its enhanced competitiveness in the artificial intelligence race.
- Investment Risks and Returns: While Fluor did not make the Motley Fool's list of top stocks, its potential in infrastructure and nuclear energy warrants consideration, especially amid increasing economic uncertainty, prompting investors to weigh risks against potential returns.
See More
- Fluor's Outlook: Fluor (FLR) is expected to see a nearly 4% decline in full-year revenue for 2023, yet the urgency of infrastructure projects may drive a stock rebound, currently priced at $47.04 with a market cap of $7.6 billion, indicating potential for future growth.
- Rising Cybersecurity Demand: Palo Alto Networks (PANW) anticipates a 14% revenue growth this year and 13% next year, amidst a surge in data breaches to 3,322, highlighting strong demand for high-level cybersecurity services, with a current stock price of $159.43.
- IBM's Recovery: International Business Machines (IBM) achieved a 12% year-over-year growth last quarter, primarily driven by sales of AI-capable mainframes and software, with a current stock price of $299.04 and a market cap of $279 billion, indicating its strengthening competitiveness in the AI sector.
- Investor Confidence: Despite Fluor and Palo Alto Networks not sustaining stock price increases, analysts remain optimistic about their prospects, particularly for Palo Alto, which has a price target of $228.79, suggesting a 37% upside from its current price.
See More
- Earnings Optimism: Early earnings reports from JPMorgan show strong performance, with a 3.89% stock price increase, boosting overall market confidence in the banking sector and potentially attracting more investor interest in financial stocks.
- Policy Shift Impact: As Federal Reserve policies shift, market participants must closely monitor interest rate trends, which will directly affect banks' profitability and loan demand, potentially leading to increased market volatility.
- Cybersecurity Risks: Cybersecurity firms like Palo Alto Networks saw a 3.01% stock price increase, but the potential risks they face may undermine investor confidence, especially amid rising incidents of data breaches and cyberattacks.
- Market Dynamics Reshaping: As earnings season progresses, investors should pay attention to performance across sectors, particularly in banking and cybersecurity, as these could reshape market dynamics in the coming weeks.
See More











