1344 ET - The compatibility between Palo Alto Networks and Chronosphere, which it's buying for $3.35 billion, might be less than its other major acquisition of CyberArk, BMO analyst Keith Bachman writes. The tech synergies are unclear, especially if, as management has suggested, Chronosphere continues to operate independently, and BMO sees most observability buyers in IT operations, not the cybersecurity market. But Palo Alto might be able to avoid the fate of other companies who've unsuccessfully tried to move into the observability market, he said. Splunk, ServiceNow, and Cisco all tried and failed to run an observability play, either by buying underperforming companies or failing on execution. Chronosphere's core business is very solid, Bachman said, and Palo Alto has a strong M&A reputation. (elias.schisgall@wsj.com)

(END) Dow Jones Newswires

November 21, 2025 13:44 ET (18:44 GMT)

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