Cyber Locks & Clever Stocks

Now, listen closely. A little while back, in ’22, these Artificial Intelligences – all whizzing and beeping – seemed a jolly good thing for tech companies. Everyone thought they’d solve all our problems, like a particularly clever pet. But things, as they often do, have taken a turn. A rather nasty turn, if you ask me.

You see, this AI, it’s become a bit of a bully. A digital hoodlum, threatening to turn the whole business world upside down, especially for those chaps who build the cyber-locks to keep our secrets safe. Wall Street, predictably, had a bit of a wobble in February when a particularly brainy AI, cooked up by the Anthropic lot, started showing off its lock-picking skills. Share prices plummeted like overripe plums. But for us, the clever investors, this wobble is a golden opportunity. A chance to scoop up some excellent companies at a price that’s almost… polite.

Two companies, in particular, deserve a closer look. Palo Alto Networks and Okta. Both are rather splendid, if I may say so myself.

Why Palo Alto Networks is a Rather Good Bet

Palo Alto Networks is, quite simply, the biggest and best in the cyber-lock business. The grand old master. They’ve been building these digital fortresses for years, and customers aren’t about to abandon a reliable old friend just because some newfangled AI is flashing its credentials. It’s like swapping a sturdy pair of boots for a pair of roller skates – looks exciting, but not terribly practical when you’re facing a swamp.

Cybersecurity, you see, is absolutely vital in this digital jungle. Remember that dreadful business in ’24 with CrowdStrike? A tiny little glitch in their software, and suddenly airlines were grounded, banks were in a tizzy, and hospitals were looking rather foolish. A complete catastrophe! It just goes to show, these things matter.

And the numbers are healthy, too. Sales are booming. In the last quarter, they raked in a whopping $2.6 billion – a 15% jump! They’re not standing still, you see. They’re constantly inventing new and improved locks, even ones that can withstand the dreaded quantum computers – those fiendish machines that could crack most of today’s security with a mere sneeze.

They’ve even acquired CyberArk, a company specializing in identity security. Think of it as adding an extra-strong bolt to the door. And CyberArk is doing brilliantly, with revenue up a dizzying 43%! It’s like watching a particularly clever little sprout grow into a mighty oak.

But here’s the truly delicious part. The share price has dropped, which means you can buy a slice of this excellent company for a remarkably reasonable price. The ‘forward price-to-earnings ratio’ – a rather complicated way of saying how much you’re paying for each dollar of profit – is lower than it’s been in months. Lower, even, than it was when that dreadful Mr. Trump was causing chaos with his tariffs! A splendid opportunity, wouldn’t you agree?

Why Okta is Worth a Nibble

Okta is one of the top five companies in the business of knowing who should be allowed into the digital clubhouse. They’re the gatekeepers, the bouncers, making sure only the good guys get in. This new AI security tool from Anthropic? It can find cracks in the walls, certainly, but it can’t tell you who should be holding the key. That’s where Okta comes in.

And in this age of ‘agentic AI’ – those automated little helpers that are supposed to be doing our bidding – knowing who to trust is more important than ever. Imagine a swarm of these little agents, buzzing around, trying to access sensitive information. Okta can tell the good ones from the bad, which is rather important, wouldn’t you say?

Sales are booming, too. They brought in $2.9 billion last year – a 12% increase! And they expect to keep growing, with projected revenue of $3.2 billion next year. A rather healthy appetite, wouldn’t you say?

Their finances are looking rather sprightly, too. They’ve gone from losing money to making a profit – a whopping $149 million! And their balance sheet is as solid as a brick. They have nearly $3 billion in cash and investments, which is enough to keep them ticking over nicely for a good long while.

Despite all this, Wall Street, in its infinite wisdom (or lack thereof), has been indiscriminately selling off cybersecurity stocks. Which means you can buy Okta at a remarkably attractive price. A true bargain, if I may say so myself.

So, there you have it. Two excellent companies, both trading at a discount. A chance to lock in some profits, if you’ll pardon the pun. Don’t delay, my friends. Opportunities like these don’t come along every day.

2026-03-17 04:33

Why Palo Alto Networks is a Rather Good Bet

Why Okta is Worth a Nibble

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