networks

Africa’s 5G access is far below the global average of more than 20 percent, highlighting connectivity challenges.

Only 1.2 percent of Africans currently have access to 5G networks compared with a global average of more than 20 percent, a sign that the continent remains at an early stage in accessing next-generation mobile technology, according to a new report from the International Telecommunication Union and the United Nations Educational, Scientific and Cultural Organization (UNESCO).

The State of Broadband in Africa 2025 report says that while Africa has made strong progress in mobile connectivity, the newest wireless technology remains largely out of reach for the continent’s 1.24 billion inhabitants.

However, industry projections suggest this could change dramatically over the next decade, with 5G expected to reach 17 percent penetration by 2030.

The slow 5G rollout contrasts sharply with Africa’s mobile success story in previous generations of wireless technology. Currently, 3G networks reach 77 percent of the continent’s population, while 4G coverage extends to 44.3 percent of people.

“The mobile sector has proved especially successful, with strong growth in mobile broadband and the development of large mobile operators,” the report states, citing companies like MTN and Vodacom as key drivers of expansion.

“However, there is still a significant usage gap, with 710 million Africans not using the internet despite living in an area served by mobile broadband infrastructure,” it adds. Key barriers, it says, remain affordability of handsets and lack of digital skills.

Chinese companies like Huawei, with more competitively priced products, have been able to establish a strong presence as a result across Africa.

The technology mix across sub-Saharan Africa shows 3G connections still dominating at roughly 50 percent of all mobile connections, while 4G accounts for 33 percent. Legacy 2G networks maintain 10 percent of connections, with 5G making up the remaining fraction.

Some countries, such as Somalia, have seen mobile connectivity flourish, not despite a lack of central authority but largely because of it, as large telecom companies have established large networks that cover urban areas well but also remote parts of the country, leading one British researcher to unfavourably compare Manchester with Mogadishu.

Mobile operators have invested heavily in infrastructure development, spending $28bn over the past five years across sub-Saharan Africa. Looking ahead, the industry plans to invest an additional $62bn between 2023 and 2030, much of which will focus on 5G network rollout and expansion.

The mobile ecosystem already contributes significantly to African economies, generating 7.3 percent of gross domestic product (GDP) worth $140bn in economic value and supporting 3.7 million jobs across the region in 2023.

Regional disparities within Africa reveal stark contrasts in connectivity progress.

Internet usage in Africa rose from 25 percent to 38 percent between 2019 and 2024, but remains well below the 68 percent global average. Sub-Saharan Africa lags furthest behind at 38 percent connectivity, with regional variations from 35 percent in Eastern and Southern Africa to 39 percent in Western and Central Africa.

Africa had a stark rural-to-urban divide in internet connectivity globally too. Only 57 percent of people in Africa were using the internet in urban areas compared with an 83 percent global average, and only 23 percent in rural areas.

Rwanda emerges as a particular success story, with telecommunications transformation following market liberalisation in 2006. The country developed a wholesale open-access 4G LTE network through a public-private partnership with Korea Telecom, ranking ninth among 38 African countries for mobile broadband affordability in 2017.

Satellite connectivity is expanding rapidly, with Starlink already operating in 14 African countries, including Benin, Ghana, Kenya, and Nigeria, though South Africa notably lacks a confirmed launch date. The Democratic Republic of the Congo and Somalia became the latest African countries to gain access to Starlink this year.

It’s been an amazing past 10 years for Arista Networks (ANET -7.42%). Although it wasn’t clear for the first several years following its 2004 launch that a newcomer could successfully compete with networking giant Cisco Systems, its clever improvement to existing networking technology (the company’s switches and routers are largely software-based, and therefore can be custom-programmed and updated) have made Arista’s solutions a very popular option.

And shareholders have been well rewarded for their foresight and patience.

First fueled by cloud computing, and then artificial intelligence

What would a $10,000 investment in Arista Networks back in mid-September 2015 be worth today? The graphic below shows its growth. With an average annualized return of about 42% per year, this position would now be worth $356,280.

Data by YCharts

Most of this gain would have been realized in just the past three years, driven by the rapid growth of artificial intelligence data centers that require high-performance networking solutions. Even prior to that, however, Arista was well equipped to capitalize on an expanding cloud computing market.

A repeat is unlikely, but…

Can ANET do the same again over the course of the coming 10 years? Never say never. But it seems unlikely.

The size of this gain is largely rooted in the sheer newness of AI, which forced the hurried purchase of any and all solutions capable of making artificial data centers function as needed. However, this explosive phase of the movement is now in the rear-view mirror.

Don’t dismiss this stock’s remaining upside potential, though. While the mathematical pace of AI’s relative growth will almost certainly slow from here, Global Market Insights still expects the worldwide artificial intelligence hardware market to grow at an average annual rate of 18% through 2034. The flexibility of its software-based networking solutions leaves Arista Networks well-positioned to capture at least its fair share of this growth.

Investing in cybersecurity stocks makes sense in this digitally dependent world. And now, the importance of protection against cyberattacks is amplified further by the emergence of artificial intelligence (AI).

That’s why some forecasts predict the cybersecurity industry will grow from $194 billion in 2024 to $563 billion by 2032 with generative AI giving companies in the sector a boost. Veteran player Palo Alto Networks (PANW 1.38%) is already seeing AI serve as a tailwind to its business.

Even so, the company’s stock is well off its 52-week high of $210.39 reached at the end of July. Does this create an opportunity to scoop up shares at a discount? Let’s dive into Palo Alto Networks to see if the cybersecurity titan is a worthwhile investment.

Image source: Getty Images.

Palo Alto Networks’ strategic initiatives

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.

CyberArk focuses on identity security, which ensures only authorized users have access to a company’s systems and data. Acquiring CyberArk was a smart move. Identity security is an area lacking in the Palo Alto Networks platform, and now that hole is filled.

The capability is important in the AI era. Artificial intelligence now executes tasks on behalf of a business, so cybersecurity software must be able to identify which AI are allowed and which might indicate an attack is taking place. CyberArk will enable Palo Alto Networks to do that task.

The acquisition also strengthens the company’s “platformization” strategy, a key component of its long-term business growth. Before Arora’s leadership, Palo Alto Networks sold disparate security products and was known particularly for its firewalls.

Now, the company is pursuing a platform play where its offerings are bought as a complete cybersecurity package. This does away with the need for customers to buy from various vendors, making Palo Alto Networks a one-stop solution.

Palo Alto Networks’ rising fortunes

The platformization approach is working. Palo Alto Networks reported strong 15% year-over-year revenue growth to $9.2 billion in its 2025 fiscal year, ended July 31.

Not only did revenue rise, the cybersecurity giant’s fiscal 2025 operating income grew to $1.2 billion from $683.9 million in the prior year. This demonstrates that Palo Alto Networks is managing its costs well as it grows revenue.

Another area of strength is the company’s balance sheet. It exited the fiscal fourth quarter with total assets of $23.6 billion compared to total liabilities of $15.8 billion. But it’s worth noting that $12.8 billion of those Q4 liabilities represented deferred revenue. This is up-front payments from customers that will be recognized as income once services are delivered.

In addition, the cybersecurity giant expects another year of excellent sales growth in fiscal 2026. Palo Alto Networks is forecasting around $10.5 billion in revenue for the new fiscal year, which would be a 14% increase over 2025’s $9.2 billion.

Making a decision on Palo Alto Networks stock

Despite a crowded field of competitors in the cybersecurity sector, Palo Alto Networks is making moves that strengthen its business, while its platformization strategy is paying off with sales growth. But before deciding to purchase shares, another factor to consider is share-price valuation.

To assess this, here’s a look at the price-to-sales (P/S) ratio for Palo Alto Networks in comparison to major competitors CrowdStrike and Zscaler. The metric measures how much investors are willing to pay for every dollar of revenue generated over the trailing 12 months and is useful for comparing companies that are not profitable, as is the case for CrowdStrike and Zscaler.

Data by YCharts.

The chart shows that Palo Alto Networks possesses the lowest P/S multiple across the trio; as of Aug. 19, it’s lower than it’s been over the past year. This indicates Palo Alto Networks stock is attractively valued.

Contributing to its many strengths, on Aug. 14, Palo Alto Networks announced that its cybersecurity systems are preparing to protect against attacks from quantum computers. While quantum machines are still in the developmental stages, they have the potential to easily slice through today’s digital protections. The announcement illustrates the company’s drive to stay ahead of emerging threats.

With strong sales, healthy financials, and a successful platform that continues to keep pace with an ever-changing tech landscape, Palo Alto Networks possesses the characteristics of a company worth investing in. Add to this a compelling share-price valuation, and now looks like a good time to buy its stock.

AMC Networks, known for series such as “Breaking Bad” and “The Walking Dead,” is partnering with AI startup Runway to use AI tools for marketing and developing its TV shows.

Runway’s AI technology will help AMC Networks ease access to standout scenes and generate pictures for promotional use.

The tech will also be used to speed up “pre-visualization” during development, which is when studios use images to come up with the look of a show before filming takes place.

Runway also said AMC Networks is exploring AI to be used for honing special effects ideas.

“As we explore the transformative potential of AI across our business, we see powerful opportunities to enhance both how we market and how we create,” said Stephanie Mitchko, the executive vice president of global media operations and technology at AMC Networks, in a statement.

“Our objective is always to use every tool at our disposal to help our creative partners fully realize the stories they want to tell,” Mitchko said.

Entertainment companies have been exploring how to use AI in their processes, which supporters say can help reduce costs and allow creatives to test bold ideas without as many financial constraints.

Last year, Runway announced a partnership with Lionsgate, in which Runway will create a new AI model for the studio to help with behind-the-scenes processes such as storyboarding. The company’s technology has also been used in series like “House of David” on Amazon Prime Video, according to Variety.

“We’re building the foundations for a new era of media — the way content gets made and green-lit is changing rapidly, and that’s impacting everything from production timelines and methodologies to distribution models and marketing tactics,” said Cristóbal Valenzuela, co-founder and CEO of Runway in a statement.

AI remains a controversial topic in Hollywood. Some creatives and unionized workers have expressed concerns about how AI could reduce jobs. Writers have complained that AI models are being trained on their scripts without their permission or adequate compensation.

Tech industry executives have said that they should be able to train AI models with content available online under the “fair use” doctrine, which allows for the limited reproduction of material without permission from the copyright holder.

AI filmmaking technology is advancing rapidly, such as with Google’s unveiling new features in its Veo 3 text-to-video tool and its Flow editing software. But experts say that artificial intelligence companies need to license content from professional studios in order to take the tools to the next level.