Palo Alto closes up sharply as Juniper hearing takes place

Palo Alto (PANW +8.5%) shares surged into the close on a day when a major hearing took place for Juniper's (JNPR +2.2%) patent suit against its share-gaining firewall rival. Attorney/trader Daniel B. Ravicher, who attended the hearing, suggests the proceedings went in Palo Alto's favor, with the judge presiding over the dispute questioning the breadth of Juniper's patent claims.

As SA contributor Markman Advisors has covered in detail, today's hearing relates to claim construction - the court rules on the scope of Juniper's infringement claims for six patents - as well as Juniper's request for a summary judgment of infringement for multiple patents.

Palo Alto investors have been nervous for a while about the Juniper suit, which is related to IP Palo Alto's founders developed while working at Juniper-acquired NetScreen.

Cowen has argued Markman filings leave Juniper well-positioned. Goldman thinks the amount of lawsuit-related "overhang" that has been priced into Palo Alto's shares runs well into ten figures.

Palo Alto filed a countersuit against Juniper in September.

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Comments (1)
  • Philip Marlowe
    , contributor
    Comments (1625) | Send Message
    The name is Palo Alto Networks. The way you write it, it sounds like the town of palo alto, ca did an IPO. That hasn't happened yet.
    15 Nov 2013, 04:38 PM Reply Like
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