Cloudflare , Palo Alto Networks and Zscaler shares all fell Wednesday after analysts noted Microsoft's entry into a part of the cybersecurity market where those three smaller companies already compete.
Shares of Zscaler and Palo Alto both slid as much as 7.4%, while Cloudflare shares fell as much as 6.5%.
Analysts emphasized that the new Microsoft Entra Internet Access and Microsoft Entra Private Access products are in the preview stage, with no pricing details available.
The Microsoft Entra Private Access service offers an alternative to long-standing virtual private networks, or VPNs, which let employees access internal programs while working remotely.
Microsoft Entra Internet Access can help security administrators control employees' connections to cloud apps, including Microsoft 365 applications such as Teams.
Persons:
Satya Nadella, Joy Chik, Morgan Stanley, Hamza Fodderwala
Organizations:
Palo Alto Networks, Palo Alto, Analysts, Microsoft, Management, Microsoft Defender, Cloud Apps, Jefferies, UBS
Locations:
Palo, Palo Alto