Nancy Pelosi’s Stock Pick Palo Alto Networks Gets A Downgrade From Top Investment Bank As Sector-Wide Consolidation Down-Cycle Weighs on Sentiment
Palo Alto Networks Inc. (NASDAQ:PANW) was downgraded to ‘hold’ by Deutsche Bank because the cybersecurity stock owned by Nancy Pelosi could be affected by a sector-wide “consolidation down-cycle”. This follows Pelosi’s February 2024 purchase of nearly $1.25 million in call options of PAWN, which expire on Jan. 17.
What Happened: In its 2025 Software Outlook, Deutsche Bank predicts that the cybersecurity sector will underperform broader software this year after a strong 2024. The bank believes that the market overestimated the impact of consolidation in 2024. “We expect 2025 will remain in a consolidation down-cycle,” stated Deutsche’s research note dated Jan. 7.
Ahead of its expiry on Jan. 17, Nancy Pelosi’s call options have a strike price of $200 apiece and the current share price of $172.83, as of Wednesday’s close, is still below the strike price.
Cybersecurity consolidation is the process of centralizing and streamlining cybersecurity tools, technologies, and processes to improve an organization’s security posture. The goal is to create a unified, more efficient, …
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