Nancy Pelosi, the former House Speaker, has once again proven her prowess as a successful stock trader with her profitable investment in Palo Alto Networks (PANW). The cybersecurity company is currently trading at an all-time high of $379.52, having experienced a 1% increase in the last 24 hours. Despite a challenging start to the year, Palo Alto Networks has managed to recover and has seen a 31% surge in 2024, making up for its earlier losses.
Pelosi’s decision to invest in PANW seems to have paid off, given the recent momentum of the stock. On February 21, she purchased deep-in-the-money call options worth up to $1.25 million, which are set to expire in January 2025.
Just four days after Pelosi’s purchase, Palo Alto Networks reported earnings that led to a significant decline, causing the stock to drop by nearly 30% to a yearly low of around $260. This drop was a result of the company issuing lower full-year guidance, despite surpassing analyst estimates for Q4 2023. However, instead of backing down, Pelosi chose to double down on her position and added more to her call options as the stock traded at a steep discount.
This bold move has proven successful, as PANW has since recovered and reached an all-time high of $383, further solidifying Pelosi’s reputation in the stock market. In 2024, Pelosi made an estimated $23 million in the stock market, with her gains primarily stemming from her strategic focus on the technology sector. In addition to PANW, Pelosi made other notable trades in this sector, including purchasing options in Broadcom (AVGO) in June. However, her most profitable trade in 2024 was her investment in Nvidia (NVDA), which also reached a record high above $140.
Interestingly, Pelosi is not the only politician who recognized the potential of Palo Alto Networks. Other members of Congress, such as William Keating and Marjorie Taylor Greene, also entered positions in PANW following the earnings dip.
Overall, Palo Alto Networks has had an outstanding year, with its stock rallying, partly due to its involvement in the artificial intelligence (AI) sector. The company has also benefited from significant partnerships and acquisitions that have attracted investor interest. For example, it acquired IBM’s QRadar SaaS assets, enhancing its cybersecurity segment, and extended its partnership with Deloitte to provide AI-powered cybersecurity solutions in various regions.
Analysts at Goldman Sachs and TD Cowen have both maintained a positive outlook on PANW shares, reiterating their “Buy” ratings and setting price targets of $425 and $400, respectively.
