Shares of Palo Alto Networks (NASDAQ: PANW), a company that provides cybersecurity solutions, fell sharply by 7.03% on Wednesday. The drop was primarily driven by concerns about competition from Microsoft Corporation (NASDAQ: MSFT).
The concerns emerged following the announcement of the launch of two new products by Microsoft: Microsoft Entra Internet Access and Microsoft Entra Private Access. These products are part of Microsoft’s ongoing efforts to expand and strengthen its focus on protecting identities and access.
The Microsoft Entra portfolio includes various features designed to strengthen defenses against cyber attackers. One of these features is real-time prevention of identity takeover. ID Protection feature utilizes advanced machine learning to identify any unusual sign-in patterns or user behavior. When detected, immediate action is taken to limit, verify, or restrict access in real time.
In addition, Nehal Chokshi, an analyst at Northland Capital Markets, showed confidence in Palo Alto Networks by maintaining an “Outperform” rating for the company. Chokshi also raised the price target for Palo Alto Networks from $246 to $305.
As of press time, PANW stock is trading at $232.64, reflecting a 7.03% decline compared to its previous trading session.
Jennifer Tacker is a staff writer at ABBO News. She holds a B.A. from the University of Waterloo and a B.Ed from Western University. Jennifer has been active in the stock market and crypto sector for a decade. She specializes in technical analysis and trading strategies.
