Morgan Stanley’s Top Cybersecurity Picks – Microsoft, Palo Alto, CrowdStrike Lead
Morgan Stanley’s Top Cybersecurity Picks – Microsoft, Palo Alto, CrowdStrike Lead
Publish Date: 2026-03-30 04:56:00
Source Domain: coincentral.com
TLDR
- Cybersecurity stocks fell sharply Friday after a report that Anthropic is testing a powerful new AI model called Mythos with advanced cyber capabilities
- The iShares Cybersecurity ETF (IHAK) lost 4.5% on the news
- CrowdStrike, Palo Alto Networks, and Zscaler each dropped around 6%; Tenable fell 9%
- Morgan Stanley had just named five cybersecurity stocks as top picks, citing AI security demand
- The sector has been under pressure all year from AI disruption fears and a previous Anthropic tool announcement
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Cybersecurity stocks fell sharply on Friday after Fortune reported that Anthropic is testing a new AI model called Mythos. The report, citing a publicly accessible draft blog post, described Mythos as Anthropic’s most powerful model yet, with advanced cyber capabilities that raise potential security concerns.
Anthropic said it plans a slow rollout because of those concerns. The company did not immediately respond to CNBC’s request for comment.
The market reaction was swift. The iShares Cybersecurity ETF (IHAK) dropped 4.5% on the day. CrowdStrike (CRWD), Palo Alto Networks (PANW), and Zscaler (ZS) each fell around 6%. SentinelOne (S) tumbled 6%, while Okta and Netskope each dropped more than 7%. Tenable (TENB) led the declines, falling 9%.
This isn’t the first time the sector has taken a hit from Anthropic news. Last month, cyber stocks sold off after Anthropic added a code-scanning security tool to Claude. The concern in both cases is the same: AI tools that can be used offensively put pressure on defenders to keep up.
Anthropic disclosed in November that a state-sponsored group in China had used Claude to automate a cyberattack.
Stock-by-Stock Breakdown
CrowdStrike (CRWD) dropped around 6% on the day. Morgan Stanley had recently upgraded the company to a top…
