Coronavirus Security Needs Make Palo Alto Networks Stock a Good Long-Term Bet
April 20, 2020
Below are excerpts from an article written by Brad Moon and published by InvestorPlace on Wednesday, April 1, 2020. Read the original article.
Cybersecurity company Palo Alto Networks (NYSE:PANW) is one of those stocks that stands to benefit from the increased popularity of working from home as a result of the coronavirus pandemic. Companies like Zoom Video Communications (NASDAQ:ZM) have been making headlines because of huge usage spikes. However, in order for employees to remotely access corporate networks, systems and data, they must be provided with security. That’s where Palo Alto comes in. It provides solutions, including firewalls and VPNs, that support secure remote access. That focus is expected to pay off for PANW stock in the coming months.
The Coronavirus and Working From Home
As the coronavirus situation began to worsen in the U.S., companies sent employees to work from home whenever possible. That began a cascade of technical issues.
The number of users of group collaboration and video conferencing software has spiked tremendously. That — combined with bored, housebound people looking for entertainment — has led video streaming services like Netflix (NASDAQ:NFLX) to offer lower video quality in an effort to reduce internet bandwidth use.
Working from home also raises security concerns. That’s where companies like Palo Alto Networks stand to gain, with solutions including firewalls and VPNs. Lori Baker-Eveleth, professor of management information systems at the University of Idaho, explains why a VPN is critical:
“The user opens VPN software, puts in their username/password and a virtual ‘tunnel’ is created to access data or application software on the company-side. It’s a more secure mechanism to access the business than Wi-Fi, be it an open connection at Starbucks or your home. Those connections are able to be hacked and someone could capture your data… Having a robust network infrastructure with strong security measures allows companies to adapt and continue work as issues like Coronavirus arise.” Read the full article.
About the University of Idaho
The University of Idaho, home of the Vandals, is Idaho’s land-grant, national research university. From its residential campus in Moscow, U of I serves the state of Idaho through educational centers in Boise, Coeur d’Alene and Idaho Falls, nine research and Extension centers, plus Extension offices in 42 counties. Home to nearly 11,000 students statewide, U of I is a leader in student-centered learning and excels at interdisciplinary research, service to businesses and communities, and in advancing diversity, citizenship and global outreach. U of I competes in the Big Sky and Western Athletic conferences. Learn more at uidaho.edu.