Weak Macro Environment Impacted Palo Alto Networks (PANW) in Q4

Renaissance Investment Management, an investment management company, released its “Midcap Growth Strategy” fourth-quarter investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy returned 11.23% (net) compared to a 6.90% return for the Russell Midcap Growth Index. The strategy declined -13.42% (net) in 2022 compared to a -26.72% decline for the benchmark. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Renaissance Midcap Growth Strategy highlighted stocks like Palo Alto Networks, Inc. (NASDAQ:PANW) in its Q4 2022 investor letter. Headquartered in Santa Clara, California, Palo Alto Networks, Inc. (NASDAQ:PANW) is a cybersecurity solutions provider. On March 22, 2023, Palo Alto Networks, Inc. (NASDAQ:PANW) stock closed at $190.89 per share. One-month return of Palo Alto Networks, Inc. (NASDAQ:PANW) was 1.14%, and its shares lost 7.95% of their value over the last 52 weeks. Palo Alto Networks, Inc. (NASDAQ:PANW) has a market capitalization of $57.765 billion.

Renaissance Midcap Growth Strategy made the following comment about Palo Alto Networks, Inc. (NASDAQ:PANW) in its Q4 2022 investor letter:

“Palo Alto Networks, Inc. (NASDAQ:PANW) lost 14.8% in the quarter. Despite posting strong results in the fiscal third quarter, with solid growth across relevant operating metrics such as revenue growth and recurring revenue growth, management observed that the weakening macro environment is beginning to impact customer behavior, with more scrutiny placed on new deals and extending sales cycles. We continue to believe that Palo Alto remains well positioned to benefit from essential investments in corporate network security.”

Palo Alto Networks, Inc. (NASDAQ:PANW) is in 24th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 85 hedge fund portfolios held Palo Alto Networks, Inc. (NASDAQ:PANW) at the end of the fourth quarter which was 103 in the previous quarter.

We discussed Palo Alto Networks, Inc. (NASDAQ:PANW) in another article and shared the list of largest software companies in the world by revenue. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.