To The Moon

Cybersecurity company Palo Alto Networks reports its third-quarter earnings on Tuesday afternoon as it spends the year integrating acquired companies. Like its nearest competitor, CrowdStrike, Palo Alto is building a suite of security services for the artificial-intelligence age to augment its platform.This year the company is likely to see outsized sales growth from the acquisitions, but reduced profit margin and share dilution should weigh on earnings. Wall Street analysts expect third-quarter adjusted earnings per share of 80 cents, flat with last year, on sales of $2.9 billion, up 29%.Key among the company's five AI-related acquisitions from the past year is identity-security company CyberArk, which Palo Alto agreed to acquire in a cash-and-stock deal announced last year that valued CyberArk at about $25 billion. The merger closed in February.AI brings a host of new security issues to enterprise networks. AI enables traditional cyberattacks to be carried out at greater scale and sp

Traders keen to seize on further gains after the S&P 500 Index hit its first record since February are betting on stock-market darlings that they expect will surpass the index’s ascent.The signals fro