Tech insiders are notorious for not buying their own shares on the open market. After all, one of the allures of being a tech employee is the massive amount of stock options many receive in lieu of a big salary. They get equity constantly. For free. So when a tech CEO spends $10 million of personal capital at the same price you or I would pay, that is not routine. He did not have to do that. It means he thinks the stock is cheap and he wants more of it now. Tech insiders at IBM, CRM, MSFT, TTD, and RDDT are buying right now, in size. Arora's move is the one that caught my attention. Three days after buying, he published an op-ed arguing that AI-powered attacks can now only be stopped by AI-powered defense. He put $10 million behind that argument before he made it in public. JPMorgan took notice. Their analyst said the selloff in security software has gone further than fundamentals justify and called the purchase a "substantial vote of confidence." The last time I saw tech insiders buying in this size was during the Covid crash. I was buying with them. That trade worked out. Palo Alto Networks is the cybersecurity platform of record for over 80,000 enterprises worldwide. That includes over three-quarters of the Global 2000. Revenue last quarter was $2.6 billion, up nearly 15% year over year. Their next-generation security business, the cloud and AI-powered products replacing older point solutions, is growing at 33% annually. YOUR ACTION PLAN The stock is down about 30% from its highs. That is why Arora is buying. Could he be wrong? Yes. Cybersecurity stocks are getting hit across the board right now and there is no guarantee the selling is done. If the stock breaks below his purchase price and keeps going, the thesis needs to be revisited. But Arora is not a speculator. He runs the company. He sees the pipeline, the contracts, and the demand building in real time. When someone with that information spends $10 million at market price, I listen. I think you should own PANW. If you want to know about moves like this the day the filing hits, that is what the War Room is for. | Want more content like this? | | |
FUN FACT FRIDAY | In Germany, it's illegal to dance (or even laugh out loud in some states) on Good Friday — talk about a solemn vibe! (It's one of the strictest "quiet day" rules around, keeping things super serious in remembrance of the crucifixion.) Want another one? Hot cross buns were once so special that Queen Elizabeth I basically banned them except on Good Friday — because they were that lucky!
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