Two days ago Palo Alto Networks share price has experienced a sharp fall, losing about 20% of its value in a single day, following second quarter results announcements and a warning towards the third quarter performance.
Some of my Check Point oriented friends would say reality is finally catching up with PAN, but I would not be that quick in judgement.
Being exposed to both vendors, I can say each one has its solid pros and cons, and technology competition is not only driving sales up (or down in some cases, lol) but also works for the best of information security in whole.
We all know that Wall Street indexes do not reflect directly the quality of the technology or even its market performance. It is all about making quick money, earning per share in this particular case. As FT explains, investors decided to get out of PANW because of the earning warning.
In reality we should be more interested in market share and its growth. During the last several years Check Point revenue grows organically with the market, plus or minus one percent, while its main competitors such as Fortinet and Palo Alto have double digit year to year growth numbers.
Yes, PAN growth is slowing down. It is not around 50%, as in 2015, but it is still estimated to reach more than 20% for 2017. Which is 2 or 3 times bigger than 7% to 9% growth achieved by Check Point through the last three years.
In other words, even while slowing down, Palo Alto Networks is catching up with Check Point market share.
Check Point still has a lot to do to change this tendency and start winning the market back.
Some of my Check Point oriented friends would say reality is finally catching up with PAN, but I would not be that quick in judgement.
Being exposed to both vendors, I can say each one has its solid pros and cons, and technology competition is not only driving sales up (or down in some cases, lol) but also works for the best of information security in whole.
We all know that Wall Street indexes do not reflect directly the quality of the technology or even its market performance. It is all about making quick money, earning per share in this particular case. As FT explains, investors decided to get out of PANW because of the earning warning.
In reality we should be more interested in market share and its growth. During the last several years Check Point revenue grows organically with the market, plus or minus one percent, while its main competitors such as Fortinet and Palo Alto have double digit year to year growth numbers.
Yes, PAN growth is slowing down. It is not around 50%, as in 2015, but it is still estimated to reach more than 20% for 2017. Which is 2 or 3 times bigger than 7% to 9% growth achieved by Check Point through the last three years.
In other words, even while slowing down, Palo Alto Networks is catching up with Check Point market share.
Check Point still has a lot to do to change this tendency and start winning the market back.

