Cloud Stocks: Palo Alto Networks Has Missed The Window To Buy Zscaler

Zscaler’s Partnerships

Earlier last quarter, Zscaler announced a strategic partnership with VMware (VMW) to help organizations simplify the adoption of a complete Secure Access Service Edge (SASE) architecture and implement Zero Trust security more effectively. The partnership will help customers benefit from VMWare’s expertise in cloud-delivered networking and security, and make it easier for them to deploy and operate security and networking infrastructure.

It recently expanded this partnership to integrate with their SD-WAN solution and for joint go-to-market engagements. Zscaler believes that it now has a well-established go-to-market engine that will generate long-term sustainable growth.

Zscaler is currently trading at $178.11 with a market capitalization of $23.9 billion. It had fallen to a 52-week low of $35 in March this year. It hit a 52-week high of $189.65 earlier this month.

When I had last recommended the acquisition for Palo Alto, Zscaler was trading at a valuation of $6.6 billion and Palo Alto was trading at $19 billion. Since then, Zscaler has roughly quadrupled in value with the market recognizing the value of its partnerships and growth engine. Palo Alto, on the other hand, has grown at a slower rate. Palo Alto clearly missed the boat on this one.

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Note: This segment is a part in the series: Cloud Stocks.

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