Palo Alto's share price dropped after the company announced on July 30 the impending acquisition of CyberArk for $25 billion. Its stock's decline was understandable given this is the largest acquisition under Palo Alto Networks CEO Nikesh Arora since he took over the top spot in 2018.

The proposed $25 billion acquisition reflects the growing importance of identity management — and would fill a crucial gap in the Palo Alto Networks portfolio.

Palo Alto Networks, Inc.'s shares are poised to rebound after 14% selloff post-CyberArk acquisition. Click for why PANW concerns may ease and drive recovery.