Why Palo Alto Networks Stock Dipped Today
Key Points
A potentially disruptive AI cybersecurity tool is being rolled out by a developer.
And not just any developer -- the company behind it is Anthropic PBC.
- 10 stocks we like better than Palo Alto Networks ›
Artificial intelligence (AI) is indisputably a disruptive technology. On fears that one currently strong industry it'll disrupt is cybersecurity, investors traded out of titles in the sector on Friday. One of the victims of this trend was Palo Alto Networks (NASDAQ: PANW), which saw its shares slide by 1.5% that trading session.
Is Claude coming for them?
These worries aren't new, but they were given some oxygen on Friday with news from Anthropic PBC. The privately held artificial intelligence developer, known for its Claude series of large language models (LLMs), announced it was rolling out a new safety feature called (somewhat unimaginatively) Claude Code Security within its AI offerings. It has been released as what the company is calling a "limited research preview" to its enterprise and team clientele.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
According to Anthropic PBC, this scans codebases to flag security vulnerabilities and then suggests appropriate software patches. These suggestions can be reviewed by cybersecurity officials or teams in order to implement solutions.
In its press release touting Claude Code Security, the AI developer seemed to take aim squarely at legacy cybersecurity solutions, writing that its product was built for "allowing teams to find and fix security issues that traditional methods often miss."
Don't bail yet
The Claude models generally have a good reputation on the market, so it's safe to assume its new cybersecurity feature is similarly useful. This, however, doesn't necessarily mean it'll be a disruptive (or even destructive) force buffeting the industry. Besides, companies in the space have been using AI for years.
To me, this is a wait-and-see to determine if Claude Code Security is a powerful enough product to steal market share away from the incumbents. I wouldn't panic if I were a Palo Alto Networks shareholder... at least, not yet.
Should you buy stock in Palo Alto Networks right now?
Before you buy stock in Palo Alto Networks, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palo Alto Networks wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $415,256!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,151,865!*
Now, it’s worth noting Stock Advisor’s total average return is 892% — a market-crushing outperformance compared to 194% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of February 20, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Palo Alto Networks. The Motley Fool has a disclosure policy.
Recommended Articles
