Former House Speaker Nancy Pelosi’s reputation as a top stock trader on Capitol Hill is again shining, as reflected by her profitable bet on Palo Alto Networks (NASDAQ: PANW).
At the time of writing, the cybersecurity company was trading at an all-time high of $379.52, up over 1% in the last 24 hours. After a rough start to the year, Palo Alto Networks has surged 31% in 2024, recouping its earlier losses.
Pelosi’s bet on PANW paying off
Based on the stock’s recent momentum, Pelosi appears to be one of the key beneficiaries. Notably, on February 21, she purchased deep-in-the-money call options worth up to $1.25 million, set to expire in January 2025.
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Just four days after the purchase, Palo Alto Networks reported earnings that led to a sharp decline, with the stock falling nearly 30% to a yearly low of around $260. The drop was in response to the company issuing lower full-year guidance despite surpassing analyst estimates for Q4 2023. For the quarter, revenue came in at $1.98 billion, slightly ahead of the $1.97 billion estimate.
Amid the drop, Pelosi doubled down on her position instead of backing down, adding more to her call options as the stock traded at a steep discount.
This bold move has paid off, as PANW has since recovered, hitting an all-time high of $383, further cementing the politician’s reputation in the stock market. Indeed, in 2024, according to a Finbold report, PANW’s rally contributed to Pelosi making approximately $23 million in the stock market.
Her gains have mainly stemmed from a strategic focus on the technology sector, where she has made other notable trades, including purchasing Broadcom (NASDAQ: AVGO) options in June. However, her most profitable trade in 2024 was her investment in Nvidia (NASDAQ: NVDA), which also traded at a record high above $140.
Pelosi is not the only politician who recognized the potential of Palo Alto Networks. Other members of Congress, including William Keating and Marjorie Taylor Greene, also entered positions in PANW following the earnings dip.
Palo Alto Networks stellar 2024
In general, Palo Alto Networks has had a stellar year, with the stock rallying in part due to its involvement in the artificial intelligence (AI) sector. The company has also benefited from notable partnerships and acquisitions that have boosted investor interest.
For instance, it completed the acquisition of IBM’s (NYSE: IBM) QRadar SaaS assets, enhancing its cybersecurity segment. The Santa Clara-based company also extended its partnership with Deloitte to provide AI-powered cybersecurity solutions across the EMEA and JAPAC regions.
Meanwhile, analysts at Goldman Sachs (NYSE: GS) have reiterated their ‘Buy’ rating for PANW shares, with a price target of $425. TD Cowen has also maintained a ‘Buy’ rating, setting a price target of $400.
