Global Equities Research analyst Trip Chowdhry sees the cloud services provided by Amazon.com, Inc. AMZN 0.46% and Microsoft Corporation MSFT 0.28% as the end of the road for Palo Alto Networks Inc PANW 3.07%. According to Chowdhry, Palo Alto simply won’t be able to compete with its larger rivals in the long term.

“Basically, in the world of SuperClouds — Amazon.com AWS and Microsoft Azure, Palo Alto Networks [has] zero play… secular growth is absent in PANW,” Chowdhry explained.

Chowdhry went on to describe a cloud computing environment that will ultimately be very unkind to the smaller players and their shareholders.

“Amazon.com’s AWS and Microsoft Azure are creating completely new ecosystems comprising Software Developers, Testers, Cloud Service Providers, PaaS Providers and SaaS Providers,” he noted.

Secular Negatives

Chowdhry sees the increasing dominance of Microsoft and Amazon as a “secular negative” for Palo Alto and the following…

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