If You Bought 1 Share of Palo Alto at Its IPO, Here's How Many Shares You Would Own Now

Palo Alto Networks (PANW -1.22%) may be recognized in the marketplace as a leader in cybersecurity solutions, but investors may be more familiar with the company after it completed a stock split in early December.

As computer networking has become increasingly present in our daily lives, Palo Alto, a company committed to keep users and their data safe, has seen its stock skyrocket in value. A $10,000 investment back in July 2012 when the company held its initial public offering would now be worth north of $692,000. And it's not only the value of their investments in which shareholders have seen gains -- the actual quantity of shares has also grown.

This recent stock split isn't the company's first rodeo

Seven years after its founding in 2005, Palo Alto Networks became an investment option for cybersecurity investors when it held an initial public offering (IPO) in July 2012. Since then, the company has completed two stock splits. Completed in 2022, the company's first stock split was a 3-for-1 split, and its second split in December 2024 was a 2-for-1 split. The calculations, moreover, may require two steps, but they're still simple. If you bought a single share of Palo Alto stock when it held its IPO, you now have six shares of Palo Alto stock.

With the company completing its most recent stock split just some weeks ago, it's highly unlikely that another stock split will happen anytime soon.

Should investors consider picking up Palo Alto stock in the new year?

From cloud security to consulting, Palo Alto provides a wide range of cybersecurity solutions to customers, making it a great consideration for investors looking to gain exposure to the industry. With the company valued at more than 48 times trailing earnings, shares may seem pricey right now, but the price tag shouldn't scare off investors. The company is poised for significant growth in 2025 -- management projects next-generation security annualized recurring revenue to rise about 32% -- and there's no certainty that a pullback in the stock price is on the horizon.