Palo Alto Networks is seeing tailwinds from clients seeking to slash prices within the worsening economic system, CEO Nikesh Arora mentioned Thursday.
“The silver lining in the current environment is that we’re having more consolidation conversations —because suddenly, the number one priority in addition to being secure is: ‘Can you help me do that without me increasing costs?'” he advised Jim Cramer.
Brewing macroeconomic uncertainty pushed by persistent inflation, the Federal Reserve’s rate of interest will increase, Russia’s invasion of Ukraine and Covid shutdowns in China have pressured corporations throughout industries to chop prices by implementing layoffs, hiring freezes and decreasing different bills.
The cybersecurity firm, whose inventory is within the Bullpen for Cramer’s Charitable Trust, reported better-than-expected fiscal first-quarter income and per-share earnings Thursday after the bell. Shares of Palo Alto Networks had been up almost 7% in prolonged buying and selling after dipping initially on the report’s launch. In Friday’s buying and selling, the inventory shot up greater than 7%.
Calling corporations’ prioritization of streamlining money outflows a “magic bullet” for Palo Alto Networks, Arora additionally emphasised that clients have gotten extra discerning with their spending.
“You go in there and say, ‘Listen, I can replace seven vendors for you. I can get you to a better security outcome. And I can do it at a lower cost,” he mentioned, including, “we’ve got to increase the activity and the focus that we need to have in the market and hope that our better execution can help us right the macro trends that we’re seeing.”
Source: www.cnbc.com”