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Chinese authorities have instructed domestic firms to cease using cybersecurity software from U.S. and Israeli companies, citing national security concerns. Notable firms affected include VMware, Palo Alto Networks, and Fortinet from the U.S., and Check Point Software from Israel. The directive, issued recently, reflects China's efforts to replace Western technology amid rising tensions with the U.S. and concerns over potential foreign hacking. The Cyberspace Administration of China and the Ministry of Industry and Information Technology have not commented on the matter.
Criminals are increasingly using AI tools for malware development, according to Kate Middagh from Palo Alto Networks. While AI-assisted coding can introduce security vulnerabilities, it also has flaws that can lead to failed attacks. To mitigate risks, Palo Alto has introduced the SHIELD framework, which emphasizes security controls throughout the coding process. This includes limiting access, requiring human code reviews, and employing specialized security validation models. Evidence suggests that malware developers are directly integrating API calls to AI platforms, indicating a trend towards AI-assisted cybercrime.
Fifth Third Bancorp and Comerica Inc. shareholders have approved their merger, expected to close in Q1 2025, pending customary conditions. The merger will create the ninth largest U.S. bank with $290 billion in assets. Comerica shareholders will receive 1.8663 Fifth Third shares per share, valuing Comerica shares at $82.88, a 20% premium. Fifth Third shares rose 2.4% to $49.78, while Comerica shares increased 2.4% to $92.45 before a slight drop in after-hours trading.
Palo Alto Networks is reportedly considering a $400 million acquisition of Israeli cybersecurity startup Koi, which raised $48 million last year. The company has not confirmed the rumors, but CEO Nikesh Arora's recent visit to Tel Aviv has sparked speculation. Koi specializes in endpoint software security and was founded by former IDF intelligence members. Palo Alto has been active in M&A, with recent acquisitions including Protect AI and a planned $25 billion purchase of CyberArk, aimed at enhancing its cybersecurity offerings.
Ascent Group LLC increased its stake in Palo Alto Networks, Inc. (NASDAQ:PANW) by 231% in Q3, acquiring an additional 10,865 shares, bringing its total to 15,569 shares valued at $3.17 million. Other investors also adjusted their holdings, with 79.82% of the stock owned by institutional investors. Recent insider transactions included sales by EVP Dipak Golechha and CAO Josh D. Paul. Palo Alto Networks reported Q3 earnings of $0.93 per share, exceeding estimates, with revenue of $2.47 billion, a 15.7% year-over-year increase. Analysts maintain a positive outlook with several buy ratings and target price increases.
