Palo Alto Networks Up 70%: Can the Rally Last Into June?

Summary

Shares of cybersecurity giant Palo Alto Networks Inc NASDAQ: PANW have been on one of the most explosive runs in the software space in recent weeks. The stock was changing hands below $150 at the end of March, and it's now trading around $240, having posted gains in seven straight sessions through the end of last week. Palo Alto Networks TodayPANWPalo Alto Networks$240.13 -7.42 (-3.00%) As of 05/19/2026 04:00 PM Eastern52-Week Range$139.57▼$248.85P/E Ratio132.67Price Target$221.49 That's a move of more than 70% in less than two months, one that has taken the stock to record highs while also pushing its relative strength index (RSI) to 87. This is not only its highest reading ever, but one of the most extreme RSI readings among all mega-caps right now.Get Palo Alto Networks alerts:Sign Up On paper, that kind of setup is usually a signal to stay away. A stock up 70% in weeks, trading at all-time highs, with an RSI that technically screams exhaustion, is not the kind of chart that typically invites fresh buyers in. And yet, the analyst community hasn't been buying into that thesis—if anything, they've been doing the opposite. The question for investors is whether the market is right to keep chasing this one, or whether the technicals are about to catch up with the narrative. What's Driving This RallyWhile Palo Alto shares had spent much of the first quarter on the back foot, this rally didn't come out of nowhere, and understanding the key components matters when assessing whether it has legs. The initial spark came from the launch of Idira, Palo Alto's new identity security platform, which marked the company's first public integration of CyberArk's technology, acquired last year, into its broader security offering. Analyst reaction was immediately positive, with Oppenheimer, for example, coming away from the company’s Impact customer conference encouraged, pointing to uninterrupted renewal activity, strong spending expectations, and no signs of customer churn from the ...