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.
Palo Alto filed a countersuit against Juniper in September.